Same here. I'm thinking about getting Netflix and getting rid of cable, probably in January.
I am very happy with Netflix and am on their two movies at a time plan. I don't buy DVD's because I rarely watch a movie over and over again. But if I want to I can order it through Netflix.
I hear you about the cable. I have extended cable (about 80 channels, no premiums) bundled with my internet and landline. In a good month I actually look at maybe ten of those channels and almost never use the landline. I wish there was an option to choose a dozen cable channels so I can keep cable news, Discovery, National Geographic, etc. along with my internet connection and ditch my landline. My cable company would actually charge me more per month if I drop the telephone service. The cable companies seem to be in the business of forcing products on their customers that they don't want.
I have had Netflix and no cable for years. I couldn't be happier. 10 is about the maximum number of disks I can consistent receive a month. Makes them <$2 each, counting two way shipping. Plus thousands of titles available online. I can't watch all that is available.