With DirecTV this week starting to beta test is new DirecTV on Demand service and Dish Network also getting ready to roll out its DishONLINE VOD service, I believe we are starting to see the next generation of TV being introduced to consumers.
I have to say that if it weren't for live Sports, I could live without a multichannel provider. On/In Demand could be nice, don't really know because I'm more of a DVR guy, but I personally don't see it as a deal breaker.
I think IPTV and VoIP is the future of televisions and phones and that the internet, television, and phone will merge more and more until it's all one. This will then lead to the next generation communication technology after that which will require lots of bandwidth (probably some sort of virtual reality/hologram stuff).