It seems that Netflix is significantly throttling Watch Instantly users (on the PC) down to an unusable cap — in my case, 48 kbps — on a per-connection basis.
I’ve said it before, and it bears repeating: Streaming Video on Demand is not going to happen until we figure out the bandwidth problem. Unless you have Google’s or Apple’s resources, these costs can be crushing. That’s why I love Blu-ray, despite its DRM saddles. It’s the only way to get real, uncompressed 1080p video content in the average consumer’s home.