honestly current netflix HD looks just ok as you can see backgrounds get fizzy in HD video all the time. If they could make something look like the 720P BR I download I'd be happy.
Netflix already has 1080p streams but they also white list which devices are able to play 1080p streams even when the hardware is capable of playing 1080p content. This is just poor and confusing marketing for re-encoded 1080p streams with higher quality.