I have noticed that on the tested podcast they constantly shit on the Wii as a Netflix streaming source but I think it looks fine. I mean I spent alot of time watching TV at my friends house(on a 60 inch HDTV) and didn't find out for months that his cable was running through composite video and it didn't ever bother me. So does HD video content really matter at all?
Now as a disclaimer I will say that there are alot of reasons for gaming to be argued as better in HD, small text for one. I am only taling about movies/tv.