Definitely agree with you. When they first started doing their own video-by-mail service I thought, "Great! Now there'll be some competition and maybe a different selection of movies." So I signed up for their free trial and prepared to be wow'ed. I was... but not in the good way.
I found out that yes, they had some anime, but only 3 out of 8 discs of a particular show I wanted to rent. Not only that, but they weren't even in order - it was something like discs 2, 3, and 7, so I couldn't even bother just getting started on it. Why even offer the series?
So I looked up my next selection. Good, they had 4 of 4 discs. I added them to my queue, and they arrived out of order. I received disc 4 along with two other movies that were much later in my queue, because supposedly nothing else in my queue was in stock at the time. I had to send the two movies back and hope that discs 1 and 2 would show up next. They didn't - I got 2 and 3. I went down to the actual Blockbuster store to see if they had disc 1, and of course they didn't have the series at all. I think I ended up ripping them so that when disc 1 finally came I could actually watch all of them, without having to play 3-card draw.
The last straw was when I rented Superman Returns. The disc came, I ordered some pizza, got ready for a nice night in... and took the disc out and it was The Pink Panther. The sleeve said Superman Returns, but the wrong movie had been put in. So I went to Blockbuster yet again and asked for an exchange, where they implied that I had actually queued up The Pink Panther and the *sleeve* was wrong. I asked them why I'd be down there trying to exchange it if I *wanted* to watch it, and that stumped them. Canceled the service the next day, and luckily it was still within the trial period so I never paid them a dime.
I still can't figure out why they half-assed it trying to compete with Netflix. Rarely have I heard anyone say they preferred Blockbuster's service, and those that did admitted that they only watch popular movies. A few even had the same experience I did where they received the wrong movie, but they "just went down and exchanged it, so it wasn't a big deal." Once you've heard 5 or 6 people say that, though, you realize it's a much bigger problem than what they're seeing.