Quote: "T1 costs so much money and its 1.5mbps. My cable connection is 3mbps. So I am not really sure why it costs so much or where the speed comes from. I know T1 is faster... but why do they say its 1.5mbps when I have 3mbps and its much slower?"
Cable connections are typially shared (on a geographical basis). You can pay for dedicated ones, but then the price starts jumping up massively. They're also (depending on provider) bought in over copper, or if you have a cable service, fibre. A T1 line would be dedicated to you, with 1.5Mbit full-duplex connection (which is 1.5Mbit UP and DOWN at the same time) across a dedicated circuit. Hence that is where you get the speed from.
Even so, a T1 isn't that impressive (speed-wise) even back in the early 90s when web hosting firms used to boast about having hundreds of servers hanging off the back of them
These days most hosts will go for OCs (fully optical fibre connections), the speeds of which can get insane, usually for local WAN connections; or GigE (think 1000Mbps). The data centre where our servers are hosted for example has 2 OC-12c connections and 3 GigE (all with different networks), that's a LOT of bandwidth
At the end of the day, a dedicated installed always-on leased line (which a T1 is just one type of) will always give a better overall performance than a cable connection. It's just that for most of us, unless you spend all day working on the Internet (from your cable connection) you rarely need it. A few years ago perhaps, I remember the thrill of getting our first leased line installed
but ADSL and cable can offer the same for much less, providing you don't want to host a popular server off the back of them.
Bite my shiny metal ass