Mr.Crimson:
My recommendation is to think very carefully about how important each of the parameters you listed are to you. You cannot have absolutely everything you want. (Specifically, your #1 and #5, if taken as absolutes, are mutually-exclusive.)
Generally, if you're happy with just getting the over-the-air broadcast channels, and you can get great reception of them via an antenna from where your television is, then there is no good reason to have cable. So that's the easy decision, if it applies to you.
If you want or need cable, and digital (which includes
HD) is a requirement, then you're almost surely (and eventually, absolutely surely) going to pay a monthly fee for either a STB or a CableCARD, either included in your digital package fee or separate.
Eventually, we will probably see some more new HDTVs with CableCARD slots. They were available in 2005 and 2006, but no one was willing to pay extra for them, so many
HDTV makers stopped making them. They're trying to sell CableCARD-compatible HDTVs again, now, and if we consumers start buying them, then perhaps that'll be an option going forward.
However, as long as the cable company is charging so little per month for rental of
HD STBs, and the actual cost of supporting those boxes in the field is so high, none of the manufacturers are going to be willing to sell them to you, so your only choice in that regard will be to rent them. The cable companies are required to offer them for rent, so they cannot use the same excuse the manufacturers use to not offer them.