In a day and age when everything is going up I can't see the point in fussing about this type of increase. Maybe they didn't go about it in the best way but it happened. Honestly, I didn't see how they could keep those prices anyway.
My family and I used to get one DVD out at a time but we switched over to just streaming about a year ago and we love it. If we ever wanted to get DVD's again we would but for right now the unlimited streaming is fine with me. Let's face it, if there is a new release movie that I want to see bad enough I'm not going to bother waiting 28 days until it comes out on Netflix and even then it may only be available on DVD meaning I can't get it anyway. I can always fall back on our local video store or OnDemand if I want to watch a movie the day it hits DVD. I usually rent comedy DVD's because I want to see the gag reel which you can usually get only if you rent the DVD.
Are the movies streaming on Netflix always the latest and greatest? No but with Netflix I find myself watching movies that I normally wouldn't have rented otherwise and end up liking many of them. We love to watch documentaries and stand up comedy and the like, all of which I can rent from a video store to the tune of $3.99 a pop, which is nearly half of what I pay a month for Netflix. From what I saw on the Blockbuster site the only unlimited program they have is for DVD's and the streaming is a la cart which seems to cost more. If I want to pay for streaming by the movie I'll just stick with OnDemand through my cable service.
Considering the fact that I pay a buttload of money every month for cable and in doing so end up paying for channels I will never, ever watch just so I can get the channels that I do watch, I still think that Netflix is a pretty good deal.