I find the Netflix stream watchable I believe the HD stream is 720p could even throttle up to be 1080i not sure it is very good if you have a 5-6 Mbps or better connection as for the "smart compression algorithm" Amazon and Netflix and others use use it is called mpeg-4.
Std def Netflix 420-p is very watchable on a smaller screen 32 ~40
maybe bigger depending on the set and only 9.00 month Netlix HD is included also ! Netflix HD is very good very watchable on the 50"
and of course the 32 .
You can stream Netlix,Hulu etc with a Playstation 4 ,X box Web capable DVD player,TV,PC or ROKU or other type streamer . The Roku , Netflix and Hulu may turn out to be the 3 greatest things for content consumption since sliced bread.iPhone and Galaxies not withstanding.
I use a PS3 or PC to stream but might get a Roku or two instead seems more practical than running a PC or even the PS3 just to stream content. There is alwayse the option of web connected sets but I just bought two new sets.A 50 Plasma and 32 LCD Even Dish HD and everything else is compressed a bit so are all the others as well as a lot of the OTA broadcasts then there is the de interlacing of the 1080i thing on broadcast ,satellite or cable .luckily the two new sets do well there .
I watch Dish HD ,Netflix and Hulu and Y-Tube sometimes on the PC monitors or on the TV's movies are always watched on the TV's
although a good PC monitor will work just fine. Web surfing on the 32 is fun .
You Tube even full screen usually beats VHS Netflix always does but back in those days all we had for home use were broadcast VHS,Beta and or re runs some had Lazerdiscs .
When decent broad band becomes more readily available the stream will improve even more . Netflix is of course getting resistance from the major isp's regarding high def streaming it's all about the money for isp's bandwidth equals money no surprise there.
Some internet music streams don't sound sound half bad on a decent system or even some of the better soundocks and portable gear but some are just plain bad. I use Pro studio gear in a treated room it does make a difference way better than most hifi gear more resolving as well.
Mog 320Kb subscription (they have a free trial also ) is one of the better if not the best music stream SQ wise big library also. and last FM 128Kb is one of the better 128Kb music streams
Eveybody can't have a Studer880,or a big Sony, or Ampex studio reel to reel and some outboard amps and gear with some rogers Ls7 speakers Nor would they want to. Some are happy with an iPhone and some decent ear buds or a Bose sound dock if that is their thing cool some of those earbuds aren't half bad neither is sound dock within it's limitations. Some years ago I had model 19's fed by a Citation one pre amp and a phase linear 700b ( it was barley off idle most of the time replaced it with a more sensible Haffler d220) it was good back then like they say if you know Altec 19's you know if you don't you don't. back then those and Klipsch were about the best you could get of course there were also the huge infinity RS1's and custom JBL's
anyway the smaller modern studio gear w/a sub is actually better at sane volumes .
IMO anything over a well done 44.1 red-book cd rom is not much better on the listening end of course higher sample rates for recording mixing ,editing and final mixing/rendering are useful YMMV.
That's why the 50" plasma is in the fam room and the 32inch Toshiba LCD is in the bedroom and the studio has 3 dedicated pc monitors and a cheap 26" Dynex TV they all have their places .
I played around with DTS master audio when it came out it is very good on a resolving system . I also found that good CD's decently recorded mixed and mastered are just as listenable at least to me in most cases. Of course it depends on the music and the playback gear while master DTS audio can be very good and is considered loss less it is still compression and reconstruction of data sliced and diced nonetheless just sliced thinner if you will.
It is good to have choices available from the many different technologies available today to suit ones needs and preferences .
I remember the first time I tasted caviar it was good caviar btw but I just don't like salmon eggs good salami or a good burger with fries tastes better anytime I also remember OTA black and white TV , 3 networks one independent station one pbs station and AM radio . And that was the San Francisco bay area .
best regards