I kinda agree with you, except I don't believe cable and satellite are going anywhere. They are still way too popular not just in the United States, but worldwide. For a lot of people, they need cable or satellite like they need air. Take me, for example, I can hardly function without my television service, even though 95-98% of the time I spend all my time on the pc while glancing over to see a tv show, movie or sporting event on my tv directly to the right of my pc.
And then there are times where I'll leave my pc and focus exclusively on the TV. However, I also do a ton of video streaming from my pc to my xbox 360, which I suppose could somewhat sustain me if I didn't have the television service, but the television service is something I don't want to part with. I have Fios TV Ultimate HD and the list of free with subscription on demand services nothing short of extraordinary. Hulu and Netflix are indeed the future, but I don't think there will ever be a future where they effectively kill or significantly diminish the stranglehold or simple mass appeal popularity that traditional television subscription packages like Fios TV, Cablevison, Comcast, Directv, etc enjoy currently with millions of people, and that isn't even accounting for the people in other countries that have similar services. I live in the USA, so I obviously know the usa best, but I imagine traditional tv services like cable and satellite are still the dominant force the world over.
Notice that in all the newest incarnations of television viewing, the rise of digital receivers, the DVR/Tivo age, the rise of on demand, the traditional never shrinks on any significant or damaging level, because it continues to so easily mutate so effortlessly to merge and coexist with the youtube generation, the twitter and facebook generation, the on demand generation, the streaming services generation. They will just co-exist alongside Hulu and Netflix. They won't be pushed out by them. And should any of the traditional services die, a juggernaut like Comcast, fios tv, directv etc will just be right there in line to convert most of those lost customers. Traditional tv is no longer like what it use to be, it's becoming more and more like all these services that are threatening it, which allows them to continue to seem to be ahead of the curve.