Smart, too. With Blockbuster doing it's own version which will include games as well as movies, Netflix cannot afford to fuck up right now. The whole thing made little sense. Raising prices but making the service more of a pain is a bad move. People with only mailed DVDs (who don't stream anything) had to start all over again. people who use both services would have to keep up two services, and pay more. Only pure streaming was largely unaffected, and that slice of the pie is smaller than you;d think, so far. I'm sure they thought they were going to be in the vanguard of a new wave of service, but that turned out to be really wrong.
I'm just glad they figured it out before they worked any harder of what would have been a real waste of time and money...and possibly a business-killer.