Plus, for me at least, it's good in that it forces them to compromise and work it out among themselves. They can watch whatever they want on it (obviously, within their genre) but they have to work it out between the two of them what they are going to watch. With the TV, it's closer to "on or off".
You certainly aren't..They actually have a tab called "Just for kids"
And the kids don't care at all who they get the shows from.
I expect Amazon to continue to aggressively compete in this area, not to mention Apple and someday, Google. Netflix is giving away their core advantage -- a huge content library and DVD/Blu-ray backup for anything not-yet streamed. No one else has that. Now they're just like everyone else.
The estimates I saw from February were 4-5 million Amazon Prime customers. That's much smaller than Netflix, much less "most families".
Netflix has huge penetration into hardware that Amazon does not have and to me that is a huge leg up for them. Also I can not believe that Netflix does not have an ace up their sleeve, i.e., a serious infusion of streaming content. However, I would be in awe if they did not have that ace up their sleeve and are instead trying to push the content providers into the present so that we can get on with the future.