The Aussie and I got our first DVD ("Julie and Julia") from Netflix, but we still haven't seen it yet because we have been too busy playing with the "Instant Streaming" option that we also have as part of our NetFlix account. Thanks to our PS3, we are watching tons of stuff! I thought I might let you know how it is in case anyone is considering it or is curious about it.
So how is it overall? It's really great. Watching shows/movies via the streaming doesn't affect our physical DVD queue, and it's great how we can switch easily back and forth between what is in our queue. The Aussie is in the middle of watching "The Office: Season 5", I'm in the middle of watching "Naria: Prince Caspian" and "Mythbusters."
In terms of the quality, it's pretty decent. We have the HDMI cable which really helps in terms of the quality but I think it all depends on what you are watching. Mythbusters looks pretty average but watching The Office makes you feel like the action is literally happening in front of you. When The Aussie and I saw it for the first time on our TV we were like "Whoa. That's hot" a la Paris Hilton. It was so clear and sharp!
In terms of loading movies, it's pretty quick. You just pop in the Netflix DVD and within 30 seconds your Instant Queue pops up. So far we haven't experienced any lag or delay in terms of loading and the movies/shows haven't froze either.
As for what can you watch via the streaming, it's pretty much up to your own personal taste. I LOVE geeky shows like Mythbusters, Dirty Jobs and almost anything from The History Channel, so I have tons of that on the queue, along with whatever movies I can find that look interesting and are available for streaming. I've found that tv shows are more common, and getting whole seasons is really simple.
In short, this totally rocks, though if i do find any problems, I'll let you know. I have a feeling that The Aussie and I will never get cable (for a very long time at least) since the option that we have for Netflix ($8.99 with one DVD + unlimited streaming) is way cheaper than our cable options.
For those that have Netflix, have you tried the Instant Streaming option be it by something like a PS3 (it's coming out for the Wii soon) or by your computer? What do you think of it?