This has been our experience too. At least half the dvds we get are unplayable, and worse yet, you get 3/4 through the movie and then you can't play the rest. They are terribly scratched up, not dirty - we clean them before playing them. I don't know what people do to them! It's clear that netflix does not check them before sending them out. I always report the problem when I send it back, but I'm guessing most people don't. It's a big pain, you wait for 2 days to get the movie, and then you would need to wait another two days to get a replacement.
Streaming works well for us on wii, a little slow on ps3. The movie choices are much older though, and certian titles are still not available, for example Star Wars movies.
It's worth a free trial for you though - the dvds may be in better shape in your area of the country.
