Go Freeview!
I hate satellite dishes and live waaaaay to far out in the sticks to get cable. So I've been with Freeview since the ONDigital days and it has *always* worked well and been consistently reliable. Plus the guide doesn't have Sky's obnoxious muzak...
My Freeview DVR (Humax Duovisio PVR-9200T) offers all Sky+ functions but series link which is being added later, and I don't miss anything Sky can offer.
My ADSL is through Nildram and speed is *always* as good as I can expect (1.5 MB due to remoteness) with genuinely helpful helpdesk staff who don't treat you like a numpty. They have clearly defined policies and an online chart to see how close you are to your limit, chosen based on what you choose to pay.
The stuff I can't get through Freeview comes from scheduled torrents in the early hours (outside my download allowance). As to the legality, if a programme has been publicly broadcast and isn't being sold on a prosecution would be difficult. Programmes like 'Lost' can be downloaded free from the makers anyway if you have an apparently American IP address: easy to arrange or use AOL if you really must...
I think the trick is never just to go for a headline price: I used ADSLGuide's ratings to pick a broadband supplier, and Which for my Freeview 'Sky+' box. It's not like NTL/Telewest/Virgin have ever had a good reputation: why on Earth did you expect a different experience to thousands of unhappy punters?