8 Mbps access: satellite -> Hulu, et al?
 

I don't watch much TV these days. Mostly Top Gear, some Mythbusters, and PPV UFC fights. I'm paying $70/mo to DirecTV for HD etc, no premium channels. I want to either kill it, or downgrade to the cheapest basic cable, only so that I can watch PPV UFC in HD.

I had Netflix streaming, but opted for the Bluray discs by mail.

I Recently upgraded my internet to AT&T ~8.5 Mbps. I have a PS3 and 1TB NAS network drive both connected to my wifi. The PS3 can see the drive.

My TV is an old 1080i in very good shape. It can only do 540p connected to a PC, so an HTPC is out. The PS3 can output 1080i, via HDMI, no probs.

I want to watch the few TV episodes, on demand, via my PS3, in HD. I prefer not to have to buy some hardware.

How should I do it? Hulu? One of its competitors? Objective is to pay less total money. Quality must be 720p minimum.

And I looked into AT&T's cable TV and it ends up being pricier than keeping my DirecTV.

If buying becomes an option, $100 for an Apple TV 2, then XBMC with Icefilms app or equivalent app.