It would be good if they had more back catalog. With Hulu you can't start new series, just continue ones that you're already interested in.
Why no commercials? People pay for cable TV and almost every channel has them (save premium movie channels).
Because if I wanted to watch commercials I'd pay for cable and get a DVR to fast forward through them. Sure there are commercials on most cable TV but that is because there is no alternative. If hulu turns into a cable tv provider there is no compelling reason to choose them over cable/FIOS. Also I've been told that Netflix currently offer unlimited streaming in HD for a pretty low price commercial free.
That might be true, but those people are frankly stupid.
Ha, that seems a little strong. I know lots of intelligent people who purchase cable.