I have not cut the cord (and I don't plan to). I have a Home Theater PC with a Ceton InfiniTV4 Tuner Card
installed, connected to both my HDTV as well as my projector. I live in a small apartment, so my everyday PC is also in the living room. My systems are connected via a wired network, so I can assign one of my HTPCs tuners to my everyday PC. This allows me to watch one channel on either my HDTV or projector and another on my PC's Monitor simultaneously. This really comes in handy when there are multiple sporting events at the same time (a.k.a football season).
I would also note that my HTPC (running Windows 7) has the Netflix Media Center plugin installed which allows me to watch Netflix shows and movies without having to exit Windows Media Center, start up a browser, navigate the Netflix, etc...
I control the HTPC from the couch using a Media Center Remote Control
. I also have a wireless keyboard nearby on the off chance I need to do actual PC stuff on the HTPC.