We did this over 2 years ago. Our 2.5yo son is (so far) growing up with very little exposure to television commercials (he almost never sees them unless we are watching something on Hulu), and we consider that a good thing. Not only that, since it's all on-demand, he can choose whatever fits his mood during the time he's allowed to watch stuff. And because the media is "always available", I think he's developing a kind of acceptance that it's okay to stop watching when he's bored because the content availability is not constrained to "now." In other words, it's far easier for him to leave a show midway when it's time for bed or something because he knows he can just pick it up later and continue some other day. This is a decidedly different experience than growing up with scheduled TV pre-DVR where every minute was precious and missing anything was a "big deal."
Our 7 month old son also played a part in the decision. I'd rather him develop a habit of filling the majority of his idle time with less mentally and physically passive activities than television. Not that he can't ever watch TV, but I hope that we can find something else more entertaining together.
