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Go with Netflix. The Wii streams at 480p I think. But not all netflix movies are streamed at 1080 anyways. I've both PS3 and Wii and I used them both to stream. The video quality on the wii does not bother me at all, even though I have the PS3 to compare it with. For the money, you can't beat Netflix.
There are no bonus features on streaming. You can't replaced DVDs completely with Netflix's streaming because the catalog is different. The streaming catalog is limited to mostly older movies and TV shows.
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