When Netflix became available on XBox, my PC feed became useless as well...since I began watching everything on my XBox. And the quality from there is outstanding, in "HD" in some cases.
In all honesty, if I didn't have an XBox, I think it would be worth it to shell out the $100 for a
Roku device. It has HDMI out, a dedicated remote, and you don't have to futz around with a computer, no Silverlight/Moonlight/Flash/whatever.
Now, I can already hear the cries of, "Why should I have to pay more..." but, in the end, if you want to use the Netflix streaming on a regular basis, you have an HDTV, and you don't own a 360, that's the way to go.