What will happen if I do nothing?

Nothing is going to change until 2008, so you will see no change whatsoever. The signals will not become progressively weak.
You can find your digital switchover date here. (If someone else has already entered their postcode, click "clear now" under settings in the left hand column.)
https://ukfree.tv/maps/dsolist
First BBC TWO will display a scrolling banner warning of the closedown, and this channel will close first (for most people). One month later, all the other three or four analogue channels will stop broadcasting.
You may not be watching your television this way. If you have more than five channels, this is certainly the case.
If you are using Sky, Freesat, Sky Freesat, ntl or Telewest you will see nothing change.
However, if you are still using a video cassette recorder (or VCR or VHS) system it will more than likely be kept only for playing old tapes!