> Each month, you send me $100, and I will send you back copies of hot movies of varying quality, but all perfectly legal
Your snide comment is way off the mark. By your tone I'm assuming you're staunchly anti-piracy and don't pirate stuff, so you don't have experience with the actual quality of pirated media.
As a long-time pirate (10+ years), I can unequivocally tell you that pirated media is lightyears ahead of anything available legally. By using just 1 (one) torrent site, I can gain access to pretty much every single movie, music album, video game (console or PC), piece of software (all platforms), and book. The downloads almost always max out my connection.
As for quality - it's better than if you buy the media. Netflix and iTunes are just now bringing out 1080p content, and it's almost definitely going to be compressed in a lossy way. I can torrent the original Bluray disc image (~50 GB) if I want to, or get a high quality X264 compressed version to save space/bandwidth. You're not forced to go with the one thing that's offered to you. Both options have been available ever since Bluray (and HDDVD) first came out. I've been watching 1080p content for years without ever buying a Blu-ray drive or any other special hardware.
And the best part of all - both the downloading process and the files I get are in standard & open formats that I can run & view on my Linux PC. What's available for download is browsed via a normal web browser, the BitTorrent protocol is open and has been implemented on Linux many times over, and I've never had any issues playing back content once it's been downloaded - the formats are open and are supported by a variety of open source media players.
Let me know when I can run iTunes or Netflix on Linux. I doubt it'll ever happen.
Oh, and VPN services don't cost $100 a month. You can get them for less than $20/month. When I was sharing a seedbox with a friend, it was $10/month for unlimited data transfer and 250 GB of storage space.