The thing that is still in favor of the cable companies is convenience. This new ESPN app is $20 and you pay for Hulu Plus and pay another $9 or $10 so you're at $30. You still need a good antenna to get the local channels and that's iffy for a lot of people.
For another $50 you can pay $80 and get a cable package with a couple of TVs hooked up and get all the channels plus a lot more, including the locals, and not have to worry about it. It's not cheap but it's $50 a month more to get that, and you probably want fast internet anyway so you get a break on the internet price when you bundle in TV. I don't see the cable cutting really there yet unless you're happy with Netflix and an antenna that works. That's about as techy as most people want to get.
Edit: Just to elaborate, here's another way of looking at cord cutting. Here's what I want: The local channels, which includes the networks (NBC, ABC, CBS, Fox, CW), ESPN, Fox Sports, NFL Network, and Netflix. That would make me happy.
But I do not live alone! Another person needs HGTV, TLC, TCM, and probably another network or two.
And another person needs the Food Network and the Cooking Channel, along with some teen shows on Disney and Nick.
And that's in a three-person household. The easiest way to deliver all the above is to be a cable subscriber, or in our case a Uverse subscriber. Maybe there's a way to do it cheaper, but how much work does that entail and what will be the ongoing maintenance to make sure it continues to work, and can someone else other than me be responsible for it? And all that to save how much each month? Fifty dollars, maybe? It's not happening here anytime soon.