So after hearing my 360 owning counterparts herald Netflix on 360, I figured I'd try it out now that it's on PS3. Here are my thoughts
Interface:
Netflix is only available, for the time being, via disc. So you have to insert the Netflix disc into your PS3, get your activation code off the site, and then select a movie/tv show from your queue. Navigating the system is essentially effortless and intuitive. It shouldn't confound anyone at all. The icons for the movies took a second or two to load up, but after that it was pretty much smooth sailing.
Movie Selection:
Unfortunately, the instant stream movie selection isn't really anything to get crazy over. The biggest hits I saw were "Step Brothers" and maybe "Bad Boys." I did find some movies I hadn't seen and wanted to catch up on, but for the most part the major blockbusters are relegated to view by disc rental.
The tv show and anime section was, surprising, very robust. If you're like me and missed out on Lost, Heroes, and Dexter then you'll be quite pleased with the tv shows. The animes were not all that bad. I'm not the biggest anime junkie, but there was definitely enough there to keep me busy for awhile.
Movie Quality:
The instant-stream movies didn't appear to look as good as an upscaled DVD, but I would say they are at least DVD quality. More than good enough for my tastes. I don't have a surround sound set-up, so I can't attest to that, but I can say that everything looked and ran smoothly. I waited about 10 seconds or so before I was watching a movie with no breaks for buffering at anytime thereafter.
The Netflix site itself:
This is my biggest gripe. Movies are categorized by, for example, the following: new releases, critics pick, genre, staff favorites, etc. But there is no section for coming soon to dvd/blu-ray. That really irked me because most of the movies I wanted to see were just in the theaters but not yet on disc. Not being able to find these movies in any one category was a pain. For example, I signed up a few days back and I knew there was a major movie that released but I'd missed it due to school, but I couldn't remember what it was. Well Netflix wasn't showing me anything but Transformers. I went on Amazon.com, looked at best sellers, and sure enough there it was. The movie was Star Trek (also District 9). Because it hadn't yet released, there was really no way to find it on Netflix at the time besides actually typing the name of the movie. Long story short, I built up my queue by using Amazon.com to find movies and then adding them through Netflix.
Is it worth it?
Well, I opted for the blu-ray functionality so I'm paying 10.99 for one blu-ray disc out at a time plus the streaming. I have enough Dexter, Lost, and Heroes episodes to keep me busy for a long time. And getting movies on a regular basis is cool. As of right now I don't think that the service is such that you have to run out and subscribe to Netflix now to experience all this. And I don't think anyone's going to be floored by the selection of movies for instant streaming (i.e. viewing on the PS3). But, I can definitely see this service expanding in a year or so. All they're missing are the HBO shows (e.g. Sopranos, Rome, Entourage, Curb) and maybe a sitcom like Seinfeld, plus a few really AAA movies on the streaming service for this thing to be really incredible.
Final Word:
All in all, I think the service will grow over time, but as of right now I have a big enough backlog of movies on my streaming queue and about 17 movies in my rental queue. Maybe it's more telling that I canceled my subscription to my premium channels because I'll be using this.

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"The tv show and anime section was, surprising, very robust."
I agree about TV shows in general, they have TONS of shows, all seasons, all episodes, it's really quite nice. But I totally disagree about anime. I'm a big anime fan, and their anime selection is very lackluster. They have only a couple of shows, most of which are kind of crap, and only about a dozen and a half full length movies, also mostly crap. Not one of the traditionally recognized anime classics is available. I would love to see a more robust selection of anime, but for now the only stuff I ever put in my disc queue is anime because they never have what I'm interested in for the watch instantly stuff in that category.