That's right. The streaming is supposedly available in the fall update to Xbox. Check out the Gizmodo article: http://gizmodo.com/5025001/xbox-360-getting-netflix-streaming
Both me and my wife love the Netflix "instant viewing" even though their catalog of movies & TV shows for streaming is limited. Finally I don't have to use my laptop & VNC connection to the media center PC as a lousy remote control. Even though I haven't played anything other than Fuzion Frenzy 2 since I bought my Xbox Elite 2 months ago (busy times, you know), this update would help me justify the price tag of Xbox to my wife!
If Hulu.com makes the move to Xbox, I'll be well on my way to cancel my cable connection. Can't wait for that to happen.