I'm still waiting for a service to come along and wipe the floor with what the cable operators provide. Right now I'm paying $120 for TV/Internet (about $60 each). If I could pay a reasonable per channel price, and they had good channel selection (PBS, History, Space, Discovery, Food, Animal Planet - for the gf, AMC, Showcase, HBO, Sportsnet, etc), I'd buy it.
I'd love it if they created a service that allowed you to pay around $2-3 (maybe $1 w/ commercials) per channel and this would provide you with a list of all of the shows those channels offer. Then you just select whatever show / episode you want to watch. There would be a 'latest shows' section to show you what's new. This basically works the same as the torrent site I use for TV shows right now (eztv) and it works exceptionally well.
Allow me to easily watch what I want, when I want, commercial free, including all historic TV shows (not just the latest season or 2) and I will gladly pay. I pay $120 for tv/internet and I watch the vast majority of my TV shows from torrents because they are much more convenient. Money is not the issue here, service quality is.