NJ is not on the list of "outlying markets."
I have to think the reasoning for canceling the HD channel additions was bandwidth. I can only think that their system can't handle it.
The biggest problem Comcast has is that they bought up tons of smaller operations, such as the old Suburban Cable of NJ. Under NJ law, because they have to deal with each municipality for provider rights, it makes upgrades very difficult and slow. Verizon was able to bring FIOS in at the state level, bypassing the towns, and they already own and operate all telephone lines in the state. They were able, albeit slowly, to roll out new technology. Comcast is simply not going to be able to rely on picking on the weakness of Satellite anymore. It needs to provide a better product. From the moment they took over Suburban, in my town, Comcast has been ridiculously slow in adding channels. On Demand is great and all that, but that's not what the majority of people want. Everybody has the DVR now, so that's not a selling point. There's no question they still pull in a lot of subscribers who don't want to pay for, or bother with, digital converter boxes, but they should start offering the little cheapy Motorola ones for free or something to force them off. We have a 13" TV in the kitchen, but I don't want to pay $3.70 a month for the box, and getting charged for the service on that TV. That is a ripoff, one or the other Comcast.