I've playing with
Playon the last few days. It's a $30 software that you install on a pc in your network that allows you to stream Hulu, Netflix, CBS and a couple of others, to your PS3 & 360. There are unofficial players that work just fine also, I use a SageTV HD theater 200.
I don't have a Netflix account, but with just Hulu and CBS, it's been pretty amazing already. I just watched an episode of Family ties and and an original Twilight zone at CBS classic tv. Between Hulu/CBS and my DVR recorded shows, there's always something interesting to watch. If they ever add ABC, it'll be hog heaven.
Netflix has already taken their step with the Roku player. I think we're just a Hulu-box (one that is stand alone - no need for PC at all) away from the next step in digital distribution mainstream penetration.
Currently the quality is not HD, but it will give dvd quality a run for it's money. And if Hulu ever get their own box, they will have the incentive to stream higher quality.