I played with hulu a month ago and really liked it. For about 2 weeks the streaming was good. The last two weeks, its useless stutter. Maybe too much growth too fast?
I've had the same experience you have. My biggest problem with Hulu, though, is that I don't think they want you watching it on your TV. Or, they'd rather have you watching shows on TV (via cable, over the air, etc), and Hulu is only for the computer. This is unfortunate. I can see myself watching a lot more television if I could access Hulu on, for example, my Xbox 360.
My biggest problem is availability. I think opening it to Australia, and other countries would prompt growth.