This is also what I do. Right now you can get showtime, starz, and HBO for $19/month.
As far as "cutting the cable" IMO if you watch a lot of TV there is just too much work to try and stream everything in today's environment. Let's look at my DVR for reference.
This week I'll tape the local and national news every night and then watch it about 20 minutes behind so that I can skip commercials.
I'll watch the Walking Dead live on sunday night
I'll tape Talking Dead so that I can skip commericals
Watch a couple of HBO True Detective episodes on HBO GO or whatever it's called on Directv.
I'll watch 3 hours live of Sunday Ticket Red Zone in my basement on a 120" screen in HD
I keep CNBC on in the background while I work from home
I have Fox news or CNN on in the background when I sleep on my bedroom tv
My DVR will automatically record the new 30 for 30 that came out this week
When I just want to watch TV and not something off the DVR I'll just flip through the guide and find something. "Oh House Hunters from Kansas City is on, I think I'll watch this".
This is just off the top of my head, there are a lot of other TV that gets watched.
For someone like me it would be a complete nightmare to try and cut the cord. I'd spend half my time trying to find or download stuff.