When it comes to asking D*/E* or cable that's something that really can't be answered except by someone that's on your same cable system, everyone's is different.
Some 'general' comments:
- A good analog cable channel can look MUCH better then the same channel on digital.
- You can get your local HDTV channels without the need for another antenna, be it one on the roof, in the attic or rabbit ears, if your cable system provides them. Even they they might not provide all your local channels in HD, on Comcast Chicago they've not added our local UPN station, which recently went HD, so no HD UPN programming like Star Trek Enterprise.
- Just because a channel is 'digital' doesn't automatically mean better, it especially depends on how many SD channels your cable system crams into the available bandwidth, some systems might compress more then E*/D*, some less, so your milage will vary.
- On our cable system, they carry many more channels in Dolby Digital then either E* or D*.
- Cable is not always more expensive then DBS. If you comparied D* or E* to what Comcast charges in our area I get more channels for less money. Some systems charge lots more then DBD, again you need to do your research for your system.
As you indicated your leaning at this time, if you're not looking at a large outlay I'd say give your cable system a shot and see if it meets your expectations. Give it a few months and then D* and V* should start rolling out what they've said they plan to do in 2005 and E* might have a more clear direction by then.