Some great advice in this thread.
I especially second the idea of ditching cable/satellite TV -- we did just that 10 years ago when our son was born, and haven't regretted it (except occasionally during college football season). We still have a 27" tube TV and a digital converter box for antenna TV, and then we also have Netflix streaming through our Wii (which we won in a drawing) and our computers.
Being an audio geek (borderline audiophile), I would love to have a bigger screen, flatter, screen to go along with the big sound of my audio system (for movies), but I made a vow that until the 12-y.o. $299 Toshiba tube gives out, I'm not buying a new TV. Besides, the current entertainment center is maxed out with the 27", so any increase in size would just create a domino effect of other things to replace. So far it's like the Energizer Bunny...
Thanks for the encouragement! We love netflix. No commercials and tv on demand. We don't even own a TV. We use our laptops to watch anything that interests us. Plus we have Redbox which we can rent any movies available for less than $1.50 a night. We have a newborn and we're considering not getting a TV for the first few years of his life.
Can you expound a little on your experience in raising your son with just having free TV? (We didn't have satelite in my family until I was in high school)