I think they handled the OTA removal well, saving money in markets with HD LiL, and still taking care of the rest of the customers.
The HD-DVR going down $100, anding a $60 OTA option is reasonable - at least to educated customers. May be a difficult sale to the average customer.
Then again, it does have limited needs. End of 2008 they should have most of the nation up in HD Lil, including PBS and the less watched nets beyond the big 4.