Netflix is cool and all, but it only has 8 million subscribers. Sure it'll probably grow, but that still isn't monumental. And if you have to have Live Gold, then it'll cost you $50 a year for the Live membership plus about $15/month for Netflix to take advantage of netflix streaming. I can guarantee you the average consumer doesn't buy $230 worth of movies a year. Netflix doesn't negate Blu Ray in the slightest.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
