It appears that 2009 may be the final extension.
Almost without a doubt. The last extension was made part of a budget bill, and it was almost made extension-proof. (Industry refused to get the ball rolling getting prepared for the changes until it was clear that they wouldn't be stuck, having invested billions of dollars, with no pay-off at the end, and a be reward for those who dragged their feet.) The over-the-air changes are tied to an auction (of radio bandwidth frequencies UHF channel 57 and up), which will pour billions of dollars into the national treasury. Once that auction happens, they cannot back-pedal as they'd have commitments to the new holders of those frequencies.
The cable side of things is a lot murkier. The digital-only push only started getting approvals this past Spring. By the same token, the changes are coming fast: Comcast in the City of Chicago is digital-only, as of last month.
Last year my TV went out, and I purchased a very inexpensive analog model, knowing I would probably have to replace it in the fairly near future, or get a converter box for cable.
I think it is still a major concern, though, that a lot of folks are still buying these sets, without knowing what you know, even though they have this warning posted where they're sold. I think people either aren't reading the warnings, don't understand them, or simply don't believe that they could mean what they appear to mean. And of course, the warnings don't warn about the possibility that similar changes
will occur with regard to cable as well.
The problem with a converter box, is that it makes the actual TV remote useless for changing channels, and another remote is needed...so I will most likely by a new set.
Check into Harmony remotes.
Hopefully, the digital broadcast channels will be available in our area, and we can then discontinue cable.
I don't know where in Seguin you live, but the center of town is 26 miles from the transmission towers for ABC, Univision, Telmundo, NBC, TBN, and Fox, and 27 miles from the transmission towers for CBS. Assuming they all stay on UHF (some channels will move their digital signals from the UHF channels they've been broadcasting them on to their old VHF channels, come February 2009, but most won't -- UHF is better than VHF), then you're pretty much on the border between "everything will be great" and "everything will be mostly great", with the right directional antenna, pointed in the right direction (i.e., 216 degrees). PBS might be more problematic, since it is and will probably stay on VHF channel 8. You'll almost surely need an outdoor antenna to get that channel.
What's interesting is that we live only 13 miles from the transmission towers, and we get much worse reception than you will. Presumably that's because Central Texas is much flatter than Eastern Massachusetts.
Like most digital electronics, broadcast areas will be an "all or nohing" thing, from what I understand.
In the abstract, that is correct. However, it's not exactly the case. For example, our PBS station, WGBH, has two full "channels". On VHF 19, they have their flagship HD channel and a SD version of their current flagship analog channel -- they actually have different stuff running on the two channels, simply to avoid presenting programs on the HD channel that aren't in HD. Anyway, that wasn't my point -- On VHF 43, they have four SD channels, with demographic-specific programming: One for kids, one for the arts, one for how-to, and one for history/society I think. Anyway, because of the way they've divided this signal so badly, our reception is very poor. However, it's not "all or nothing." It's like every minute or two we lose sound for a second; and maybe every five minutes the picture freezes for a few seconds and then comes back.