I've done it a year ago. No cable tv anymore, only internet. I save right around $100 per month and I'm not missing anything I used to watch before. I use a laptop connected to my tv with an HDMI cable and use a wireless keyboard with a built in mouse and not those little streaming devices. So I sit on my sofa and surf the web on my tv across the room.
I have a Hulu Plus account and watch all my shows on that the day after they air. But CBS streams all their shows on their website and not on Hulu. I just keep shortcuts in my browser to all my favorite shows. I also buy whole seasons of a couple of cable tv shows on Itunes, and download the latest episode each week.
I also use a HD outdoor antennae that catches about 20 stations when I want to watch live local stations like the news, etc.
I just typed all of this while sitting on my sofa with my feet propped up and keyboard in my lap!
I'm thinking about trying one of these little mini PC's instead of my laptop. They are very fast and are cheap. There are at bunch of brands out there so I just need to do some research on the best ones.