TLDR: Netflix raises subscription cost 60%. The comments on the post are vicious.

They are duplicitous. DVD by mail is not a separate product. It is a workaround for the fact that they have failed to license their entire library for streaming. Now they have a perverse incentive to limit their streaming library to encourage people to pay extra for DVD service.

[edit] Now had they just said, "Hollywood is putting the screws to us, we need to raise our prices" I could respect that.