My Tivo got the service update that enabled Netflix streaming. I reactivated my Netflix account, enabled it on my Tivo, and was streaming content in about 3 minutes. The quality is excellent and the interface is great–you simply add a “Watch Instantly” flick to your “Watch Instantly Queue” (separate from your normal DVD queue) and it becomes available immediately on your Tivo to watch.
My only two qualms are the small selection (which will grow in time) and no option to have japanese w/english subtitles for anime series (we’re stuck with english dubs).
I foresee cutting cable soon (after BSG is over).