Netflix just released this box that lets you stream the "Watch Instantly" movies straight to your TV. There are ~10,000 DVDs available for viewing (generally not new releases, with the exception of TV shows I've found). The box is $100 and there is no monthly charge - you get Watch Instantly automatically with any plan, and unlimited time if you have a plan over $10 or so. Also, you can use the feature simultaneously on as many machines as discs you get at one time (i.e. 3 discs at a time means you can run 3 boxes/computers at the same time, each with independent programming).
Setup is easy, just plug in, find your network (has wireless capability as well, so no need to run an ethernet cable), and you are given a code to enter on your Netflix account page. Then you just add movies to your Instant Queue and you're ready to go. In less than 30 seconds, the movie starts streaming at DVD quality. It throttles quality based on your connection speed, so results may vary -- BROADBAND CONNECTION REQUIRED. I've never seen any hiccups or anything. You can pause, fastforward, and rewind too, though that causes a slight delay while it works.
The only real downside in my eyes is that you have to add movies to the Instant Queue via your computer -- there is no way to pick out movies from the box itself. You can have more than one movie in your queue at one time (I know I have 15 right now, not sure if there is a limit or not) though, so you don't have to use your computer all the time. It's not a big deal for me since my laptop is almost always in the room anyways, but it may matter to some people.
I would say that if you have a Netflix subscription and a broadband internet connection, I would spring the extra $100 to pick up the player. But make sure you check out the Watch Instantly selection first to see if there is stuff you are going to watch. The only other thing to check is how much Watch Instantly time you have available (I believe that any plan over $10 or so will have unlimited, but check).
Product page: http://www.roku.com/netflixplayer/