My wife and I just traded in our cable subscription ($65/month) for Netflix ($12/month) + XBox 360 for tv streaming ($299) and let's face it, XBox 360 duties as well. Streaming from a USB hard drive (already owned). Plus Christmas gifts basically covered the XBox.

One month in, no regrets.

I don't think the video industry is "dead", but it sure is in for an upheaval.

Netflix's streaming library is "meh", but if you have Netflix streaming be sure to poke into the "Starz" library; they seem to have to keep it visually separate for legal reasons and it has a surprising amount of moderately good/recent stuff in it. If you see reviews from before the Starz edition, it's certainly gotten less meh since then.

I would characterize the Netflix streaming library as: If you have a specific video in mind and you want to know if it can be streamed, the answer is "no". If you want to stream a video and you wonder if there's something good worth streaming, the answer is "yes". That's actually progress, all things considered.

Now, if either Netflix or Microsoft (XBox 360) cut a deal with Hulu, I'm set. And I expect the odds of at least one of those occurring in six months to be better than 50/50.