I'm going to steer clear of the "physical/owned vs. temporary/unowned" media argument (look between the quotation marks and you can guess my attitude) and actually take a slightly different direction in answering the OP's question.
Unless you're one of those who doesn't care about picture quality, or you don't plan on ever watching anything made prior to 2005 that hasn't been completely overhauled and changed from the original (Trek Remastered, for example), I'd actually be more concerned about the TV you have than the player. One of the things that turned me off HDTV and Blu-Ray initially was the fact my first exposure was 1080 LCD. And, frankly, unless you're watching sports, nature documentaries or concerts, 1080 LCD makes everything look like shit.
Anything made prior to the digital age is all grainy and pixelated - and like 20 year old VHS tape recordings. Newer films show up deinterlaced, which means the sheen of the film appearance is all but removed. The result being everything looks like it's shot on videotape. Which is great if you want to see Alice in Wonderland or Avatar look like The Starlost or 1970s Doctor Who. (I've been accused of talking out my ass on that one ... until I took someone to a tech demo and sat them down in front of a 1080 LCD and they agreed with me instantly.)
So what turned me around was getting a 780 plasma set. That gives you superior picture - not 1080 perhaps, but for most people you can't tell - and the film sheen is retained so it actually looks like a movie and not chromakey'd Doctor Who. And older DVDs look great, as does broadcast television in SD (for those who aren't paying the extra for the HD stations). I can't imagine everything Netflix sends out is full 1080 HD - the bandwidth would be atrocious - so I bet that stuff looks a lot better on a plasma, too.
Alex
I don't have a 1080 tv, so no worries there.
The blu ray is less about picture quality, though it is, I guess, and more about bringing netflix streaming to me TV set.