Finally gave up and bought an Apple TV for ? 6700 on ebay this October. Considered everything from chromecast to roku to wdtv but ATV seemed like the simplest and easiest solution. Been meaning to get one for well over a year now but was waiting for an updated version. But with the PS3 and 360 dying thanks to the long hours they were used for Netflix, it didn't seem worth it to wait anymore. Worst case scenario, I sell this one off for 2-3k loss and buy the new version if/when it shows up.
Took minimal effort to set it up and get netflix running on it. Takes about 30 seconds to boot up for the first time. After that it never shuts off. Simply goes to sleep after a specified period of time and gets back up (continuing exactly where it was before it went to sleep) within a couple of seconds when ever you hit the button on the remote. Super convenient!
Netflix performance is great as well. Takes 5-10 seconds average before the video is up and running. It starts at 480p pretty consistently (compared to xbox and PS3 which started at ~240p more often than not). Also the video jumps to 720p within 10-15 seconds max. Goes to full hd a few seconds after that though I'm never sure as it's pretty hard to tell the diff between netflix' 720 and 1080p. Anyways, the PQ is as good, if not better than it was with PS3 and its a Lot faster compared to both the PS3 and 360.
The tiny remote it came with didnt seem like much at first but turned out great. The build quality is superb. It's definitely the best looking remote I've ever used. Thought it being so slim will make it uncomfortable but it worked very decently. If anything, it being so slim turned out a positive in real life use. It goes straight into my shirt pocket once Ive started the video on netflix so no more looking for it among half a dozen remotes lying around me when I'm watching TV. The lack of buttons doesn't hinder it in any way either. Though I do wish there was some way to control the volume using ATV remote itself.
Another great thing about netflix on ATV is fast forwarding. I can be quite impatient some times when there's not much going on in the movie/show. While you can skip ahead a minute or more with netflix on other devices too, you can't actually fast forward. On the ATV, ff works like it does on the tatasky plus (or your old VCRs if you remember using one). 2x mode gives you a very smooth video running twice as fast so you can go through the scene in half the time while still making sure you didn't miss anything. It works perfectly as if the video was hosted on a local drive without ever needing to stop for buffering. Not even when you eventually play the video in normal speed again. Fast forwarding at 4x and 8x speeds too work well enough except it now pauses for a few seconds to buffer whenever you play the movie at normal speed again.
Youtube works great too. The fast forwarding works here too but unlike netflix, youtube requires you to have the video buffered quite a bit before you can use it. Also, if you reach the end of buffered part of the video, it'll stop and re buffer before you can FF or even play the video. Just goes to show how great netflix is at streaming video compared to even an industry leading giant like youtube.
Another great thing is the subtitles. Maybe I missed it but I couldn't find any way to change the subtitles color on either the xbox or PS3. I was pleasantly surprised to find out that in ATV, not only can you change the color to your liking but also, the size, style, font (though only 5 options), highlights and even the transparency levels of text and/or highlights. For those that prefer/need the subs, these options really help a lot.
Not everything's rosy in the walled garden though. ATV has its issues too. The interface is pretty dated and needs a facelift. It looks nice and works well enough but just not what I'd expect from apple in 2014. Also, the neflix app sometimes acts funny and won't play some of the videos giving me auth errors saying the content is unavailable while the same video works perfectly on my iPad. A hard restart of Apple TV fixes the problem though. And if it still doesn't work, I can always play the video on ipad and AirPlay it on AppleTV.
Overall, I'd totally recommend the Apple TV for netflix and especially if you own an iPhone/iPad. The only regret I have is why the hell did I wait this long and didn't get it two years ago!