SD movies, no thanks. Maybe if I had a flea, but I use my Onkyo 805 for up-scaling, and prefer not using SD movies anyways.
Thats very very cool that you can invite your friends on live to come watch the movie..... But I'm with Stitches here on not loving this if its all going to be in SD. Good news is that you can get HD movies from marketplace so I would guess Netflix could do the same if they went to spend the cash to do it.