Here's how this Netflix thing is going to shake out.  Hastings is going to split the two products in two so that it's easier for a tech/media company to but the streaming business.  The DVD business remains a cash cow that they can ride out until the last dollar shows up.  This all creates a milestone that allows him to mentally walk away in 2-4 years and change education (his stated post-Netflix gig).  Pretty simple.  The brand's new public perception is just accelerating that plan.  The stock price is now back to where it should have been in the first place.  If there's anything I would fault Hastings on it is not selling the company when he knew the company was over priced.  Hindsight.

What I find most interesting in this whole story is how many people have the energy to get worked up over spending $10 per month for an entertainment service.  If it's not working for you -- cancel it.  Yes, the $10 plan used to include streaming and one disc.  You used to get a steal.  Now you just get a bargain.

Bottom Line: If a customer is so price sensitive that you can't extract an additional $5 - $7 per month out of them -- make them leave.  You probably didn't want them in the first place.