Here's my cable-free setup that myself (and my wife) are extremely happy with.
Custom built PC Running Windows 7
With 2TB USB Drive
2x 500gb internal Media Drives
Hauppage PCI HD Tuner Card
HD Antenna
Hooked up to our 40 inch LCD via HDMI.
Windows Media Center is the main frontend, where we schedule OTA recordings for all the network shows we watch (How I met your mother, modern family, simpsons, family guy, house, bones etc)
with Boxee installed as a selectable app to switch to for streaming / general media and netflix playing, along with Hulu Desktop/XBMC. Air Video runs on the PC as well to steam all the video files to our iphones from anywhere.
Everything is controlled with our harmony remote, very easy to use and wife friendly.
Built the computer for about $430 (minus the 2tb usb drive, cause i had this before i bought the PC, along with the harmony remote and antenna)
So all in, it's probably a $650 investment, which if you are paying $60 a month for cable, you make up in less than a year.
I can't recommend setting up a HTPC enough, if you have a little bit of patience to work out the kinks, it can be really fantastic.
The only thing else we have is an original Roku hooked up to a crt tv in the bedroom for netflix only and my wife mostly uses this when i'm playing videogames or before we go to bed. She loves it.
The hole in this setup is sports. I don't watch any sports so it's not a real issue. I have fios so i get ESPN 3 on 360 and PC, but I never use it. Any sporting events that i end up watching are always on network (super bowl, world series) so it's not a concern for me, but I can see how you can get boned if you are a sports fan, although, a lot of the sports have streaming services now so that's something.