I tried few free shows on iPhone 4 over 3G. Video quality is spectacular. I am not going to buy it because I am already paying for $120/month for cable and dvr.
And this is why I am considering it, in addition to netflix, since I cancelled cable and dvr at that rate.
I would agree with you on that but I need cable for occasional news and live broadcasts/award shows/talk shows type things. Otherwise I can totally live off of Netflix and Hulu.