Its not free, but Sony gives you zero road blocks to get to it and netflix also gives you the choice of Blu Ray as a media choice on the PS3.

It did.

Two answers:

1.No subscription to block you from your subscription

2. Blu Ray rentals.

Well no duh I am not implying it's free altogether. You have to pay to use the app on 360. You don't have to pay to use the app on PS3. As long as you have a Netflix subscription, it's free to use.

An older pre 2008 80" HDTV, that leads me to believe it might be a rear projection HD ready tv?
If that's the case then it wouldn't do blu-ray justice, since those only support up to about 600 lines of vertical resolution out of 1080.

Netflix HD and blu-ray have a huge difference. 
Netflix HD runs upto 5mbps picture+sound, Blu-ray upto 40mbps for picture alone, movie theaters upto 250mbps.
You won't see too much difference during slow moving and static scenes, but a world of difference in heavy action scenes.
And if you have the right setup you also get better sound on blu-ray.

Here's a list for best picture quality on blu-ray:
http://www.blu-ray.com/movies/top.php?genre=&sortby=video&show=reviewrating

Their review for 300 is a bit mixed, great detail but flat picture due to some encoding and heavy post processing choices.

Yeah I know Netflix HD and Blu-ray have a huge difference. Netflix HD looks like a DVD. 

What I was wondering is if 1080P HD on demand (such as the Hunger Games) is close or about the same as Blu-ray. Because the Hunger Games on my HDTV in full 1080p looks as good as it did in the movie theater. 

pfff, is it a milestone considering Netflix is in declining? And I think people on 360 will use Zune video / Xbox video rather than Netflix, but I could be wrong....

Its much harder for Netflix on Xbox 360.

Theres much more options than on PS3.

360 has

Netflix
Lovefilm
Xbox Video
Now TV
Sky
BlinkBox


And 2 more I cant remember.


On my PS3 I have a choice of 3.

Lovefilm
Netflix
PS Video Store ( Which lacks massively in comparison to Xbox Video )

So if I used my PS3 for any service it would be Netflix.

But the 360 has so much more content and options I use

Netflix, Xbox Video and Now TV combined on Live. The ultimate HD streaming service is what Live is.
Oh and just started using the new NBA app.

I doubt it, unless you have Google fibre and they offer extremely high bitrate movies.
I don't know which service you have. I have Rogers and they stream 15mbps mpeg2 for 1080i60 HD on demand movies, again nice with slow moving scenes but not holding up well during action. (mostly due to the ancient mpeg2 compression)
Blu-ray streams 1080p24, so next to a higher bitrate (and more advanced codecs in my case at least) you also get the movie footage without the 3:2 pulldown conversion.

In my experience it's:
Netflix HD <= PS3 movies (upto 6mbps vc-1) < Xbox movies (upto 10mpbs vc-1) = on demand streaming << blu-ray <<<< cinema
(1080i60 or 1080p60 doesn't make any difference for 24fps movies)

The cinema version should be much better then blu-ray and HD on demand in theory, but it all depends on how well the system has been calibrated. Most of the time it looks better at home since you can control brightness, contrast and ambient lighting exactly to your liking. Plus projecting from a point source through 100ft of air onto a huge flat screen is never perfect.

That is your excuse?? WOW you are something special. How about the fact that you don't need to buy xbox live and then buy a netflix subscription maybe? Or the fact that the Netflix app is better designed on the ps3? Use your head or cash that check from Microsoft.