Netflix streams BD quality 1080p right now (they call it "SuperHD" lol, but it is just 1080p). It is just the audio that isn't there at this point. For half the stuff I watch on there, I don't need a 1080p stream anyway. When I want the full experience, I buy it or rent it on BD, though I haven't been buying many discs. Another buddy of mine is the same as you Darien, he dropped Netflix streaming and gets discs only. I didn't mind getting the discs in the mail, but the streaming is even simpler. If I don't like something, just stop and watch something else without having to send the disc back and wait or go to the store to exchange it. The selection still isn't as good as the disc selection though.
FYI, they also now stream 3D and it looks pretty good to be honest.