I'm using Bell right now, with the Fibe 25 Mbit service. This gives me 75 Gbytes per month, which is a little blip at these speeds. For an extra $5 I can bump it up by 40 Gb, and do it again and again. I have all the kids home right now, so I won't say how many bumps I've got! :) Still, I don't know what is required for good Netflix, since they send things down uncompressed. Also, I have found you can get high compression ratios for video, that can be brought back to life (to 1080p) with the PS3 upscaler. I really don't want the intense detail of blueray. Who wants to see nosehairs?
The best compression comes from the blueray version, even if it is compressed to lower resolution, since the compression keeps the most important details. The upscaler seems to work well with this. I don't see a need for uncompressed blueray, and that's going to be over 10 gb a movie!