It's hard to know how controllable something is until you try to control it. The copyright industry has plenty of evidence that it isn't practical. They're slowly moving toward accepting that not everyone wants a DVD, but I still can't get half the movies I want to see with Netflix Instant. I would happily pay a few dollars more for Netflix if the copyright industry would let them stream new DVD releases.
I would actually love to see a better tiered Netflix model. $5/mo for TV shows that have been released on DVD, $5/mo for movies that have been released on DVD, an extra $10/mo for new release DVDs, an extra $10/mo for TV shows delayed a week from broadcast, an extra $10/mo for getting those released DVDs mailed to you (broad spectrum). So for the full gamut, you're paying a lot (but less than cable), but you can pick and choose which of those matter to you.
If you wanted just what they have right now, you'd pay $10/mo for released movies and DVD releases of TV shows streamed. If you wanted just TV shows including recently aired, you'd pay $15/mo. To get those released DVDs mailed would cost $25/mo, and to get it all you'd be paying $40/mo.
If you think about a music subscription service, you'd basically paying the cost of 1 album per month for songs you're going to be listening to over and over. With this structure of Netflix, you'd be paying for two DVDs per month but movies are generally only watched once or twice.
I'd be happy to pay $50/mo for netflix that included HBO, Showtime, AMC and BBC new releases if only because Netflix supports so many devices.
Cable services provide unbelievable horrible services (locally it's $25/mo to rent a PVR that supports DNLA but it is software disabled so you have to rent a PVR for each TV!)
