In Oz, the TV stations have started broadcasting both HD and SD digital, but still retain the analog signal. You can get a digital set top box for around $40AU (approx $30USD). The bonus here is the govt broadcaster has a second "digital only" channel. This is capable of picking up SD and HD signals, but my TV will only display the SD ones.
All of these channels are widescreen, and display on my 10 yo TV in letter box format (i.e. with black bars above and below the image).
I'm not sure they have set a time frame here for turning off analog, but I don't really mind. The cost of entry is pretty low...
There is only one downside that I can see to digital - if you had crappy reception on analog, you may end up with no picture at all on digital. Basically, if the signal is not good enough, you get a blue screen.
I'll get a big shiny new TV one day that does HD, but it is hardly high on my priorities...
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