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I guess MS wanted everything to be operated with Kinect and XBox One to become the central box in the living room. However the younger generation doesn't care much for cable anymore, while the older generation don't want another complicated device between them and tv. I'm in between but also a videophile and wouldn't dream of putting another step in the signal chain, tuner -> quality amplifier -> tv, nothing else.

We still use cable because:
- Internet caps and unstable bandwidth. Cable tv is simply better quality without restrictions.
- Ease of use. DVR what's on from a limited menu. Easier to decide what to watch together when the choices aren't infinite :) The paradox of choice quickly rears its ugly head when trying to decide what to watch on Netflix.
- Most of the shows my wife likes are only available on cable. (legally that is)
- Flat fee, all in one service, 24/7 customer service.
- We fall asleep with the tv on, would suck if the meter keeps running...

My kids are mostly on YouTube and Netflix though. They don't care about the quality or interruptions and watch the same crap 50 times anyway. I usually get burned out on series on Netflix by watching too many in a row. Most shows work better in a weekly format to stay interesting.