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That's more my line of thinking. We have DVDs, and can buy/rent more, we can watch for FREE online... cartoon network for instance, but also sites like Hulu have shows and films as well. Friend has a Netflix account and it is SO worth it. $10 and you can order movies to be delivered (no going out in icky weather to return on time!) AND you can watch live stream... and that live stream is available on any puter that the 'owner' logs in on so we get to use their netflix for free... even at the same time that they're using it at their house, on multiple computers. Think this will be really cool if it's still around when the kids are off at college... pay for OUR netflix and the kids can log in and use it where they are... very cool.
And since we pay for DSL for our entertainment, email, not to mention HSing, DS's college school stuff... why NOT use that same device for movies/shows too? NO extra cost... just a bunch of free entertainment. And we can use that saved $30-50/month for something else.
Besides that, the TWC (the company my neighbors use) are out here at LEAST once a month... actually, they've been out once a week here lately!! Charge out the nose and it's not even dependable!!
But ignoring my opinions... my In Laws and SIL have cable... I think through AT&T, but not sure... they can't live without it. Mom and StepDad had a satellite when first married, converted to cable when they moved. It was a HUGE disk and the new backyard was just too tiny... seemed to be happy with it. Don't know anyone who's got one of those little dishes, so can't comment. Overall either can crap out, either takes time to fix, didn't really see a big difference in service between the two types. But I think I'd go with cable over dish simply because if a branch falls and breaks the dish it's on YOU, vs if there's a cable problem it's on the company.