No cable here. We got rid of it 7 years ago and haven't looked back. We have rabbit ears on both our TVs and watch broadcast when we do watch TV. Cost is FREE!!!
We watch NBC, CBS, UPN, CW, ABC, PBS, Ion, Ion Life (free digital home improvement and life channel), Qubo (free digital 24 hours kids channel), MyNetworkTV (lots of great old reruns), and a few of the Spanish language channels.
I bought an S-cable and an S-cable converter at Radio Shack for $25 and a $3 AV cable at Big Lots and hook up the computer to the TV (very easy, easy enough for my 6 year old to do). We stream lots of tv shows directly from the channel's website or from Hulu that way.
We also pay $9 a month for Netflix for the unlimited monthly one at a time and unlimited free streaming video. I am told there is a way to stream Netflix through a Wii, but we don't have one so I am not sure.
We are able to get up to 15 DVDs and Videos through our local library at a time, and they have a lot. Plus there is streaming childrens shows available through the library website free.
We also have a decent family DVD library thanks to garage sales, Half Price Books, Movie Trading Company and gifts from family.
To entertain ourselves in lieu of TV, we got on nature walks, play board games, sew, do art projects, and have memberships to the art museum, the childrens/nature/science museum, and the zoo. All three memberships together cost less than the cable did for the year.
We were paying $65 a month 7 years ago for cable. That paid for our Disney trip last year, with $2k left over. Something to think about.
As far as the "bundles" are concerned, the phone/cable companies want you to believe you can't get a better deal. You can, you just have to get ugly with them. We cut our home phone service down to $15/month local and emergency only and our DSL is $40 a month. That's including the massive taxes they add on. Once Verizon realized I was going to cancel all service with them if they didn't do what I wanted, they offered basic packages in a hurry!