The important shift isn't really 500 channels->5 billion channels, but rather an entertainment system based around scheduling vs one that is on-demand.

500 channels didn't do shit for me, there's still "nothing on" most of the time. The DVR, on the other hand, did quite a lot for me.

A move to full-on over-the-net device neutral VOD does even more, and it is obviously coming whether existing stakeholders want it or not.