The PS3 now streams UP TO 1080p, which I think only a few devices do. Not every movie is 1080p and it is also entirely dependent on your connection speed, so the PQ will be degraded according to what your speed supports. I have a pretty fast connection but I'd say I am typically getting about 720p/1080i quality. Adequate for what I typically watch on there, but not for watching a first run movie. The DD+ audio is surprisingly decent in 5.1, but not everything is 5.1 either. If streaming to a TV or blu-ray player, yes, your quality will almost definitely be average at best. Streaming to a PS3 however, is a lot different because it handles the stream differently and is better able to buffer. I've seen this first hand at my other house: my Panny BD player has problems streaming (low quality video, lots of pauses to buffer) while my PS3 does not, on the same physical wire.