We haven't had cable (even basic) for YEARS.
Hulu is free and Netflix is free for a month, so I'd strongly recommend that you try them.
For us, we usually just stream to the computers (we're a techie family).. but there is also a cord you can plug into your TV if it's newer (past 5 years or so) that takes the info directly to your TV from your computer... OR if you have xBox/playstation or a TV that's only a few years old you can stream directly to your TV through those devices. Some DVD players, as well, will do the streaming option.
We ALSO stream directly from the station sites themselves. Like Hulu, station sites have commercials. Typically 4-5 30 second commercials. And like both Hulu and Netflix you can pause, FF/RW any show at any time. Sometimes they're live (like for sporting events), but mostly they have a 24hour delay.
Of course, Netflix, Hulu, iTunes, Zune, & Station Sites are all legal.
For Hulu you just click on the show/episode. For Netflix you go to "Watch Instantly" and either add it to your Queue, or click play.
There are tens of thousands of shows on Netflix that are streamable, and hundreds on Hulu. From Kipper the Dog to Lost to Dexter to CSI to Battlestar Galactica. I have something like 40 subscriptions to shows on Hulu, and our Instant Queue has several hundred shows on them. Each familiy member has their own log in, so kids shows are on kiddo's page, school shows are on our school page, and dad & mine are on our page. Makes it handy to keep things seperate. No extra charge on Netflix for splitting the account that way, either. One address, one bill... but we have it split into 4 "accounts". Hulu, since it's free, is also split into our individual accounts.
Not all shows are streamable, which is why we have the DVD option from Netflix in addition to straight streaming.
But seriously... type in www.hulu.com, create a profile, and start trying it on your computer. Netflix needs a credit card number even for the free trial, but at only $9-$20 a month and the first month free... hop on and start poking around.
We've never looked back. I can't even *contemplate* returning to expensive cable.
((Note: For premium channel shows... you can download each episode from either amazon or iTunes or just wait for the season to come out. I *cannot* wait for HBO to choose to let us "buy" a show to stream. I'd pay $10 a month just for TrueBlood. Of course, the upside to not watching it weekly, is that I can veg out and marathon the entire series via iTunes on the day that the season finale airs)).