This seems like a good question. For my part, this question came up in my home recently. My choices are:
XM Radio subscription and hardware purchase.
Upgrade of my Cable TV subscription to include some radio channels.
Internet-Based Radio and downloads.
Monthly subscription fees for each of these would be very roughly the same ($10) except the cable TV package upgrade unfortunately costs about $22 per month I think.
If I could figure out a way to use my existing cable-internet connection and beam it to my hi-fi with decent fidelity, I might consider doing this. Yes, it's a very geeky wierd project, but whatever. I think it would be a fun project, and might allow me to integrate my internet radio with some music download purchases. I do have a wireless router I'm not using, so I'm wondering if that could be a way to set up some sort of "receiver" near my hi-fi that could receive the signal, instead of stringing a wire across the house.
Or maybe there's such a thing as a purpose built internet radio "receiver" (i.e., that would allow me to not have to keep my computer tuned in all the time?)