Piracy has been an attractive option because it gives (almost) immediate access to the content. But much content is not available, certainly not for old classics that weren't offered on DVD. Hopefully Netflix will gain access to those. While the studios are missing out on an opportunity (don't they always shoot themselves in the foot?) there are some good things in the Netflix deal.
Value #1: I don't mind the 28-day delay since I can get more content options. While not everything available on BT is in the Netflix catalog, adding more options is always a good thing.
Value #2: The BB and RB kiosks are only gonna have the latest and greatest, and not nearly the selection that Netflix can offer for immediate download and no extra cash from my pocket than what I already budgeted. Sure, I can get a BB subscription, but I really don't ever need to be the first on my block to see a new release.
Value #3: My Tivo is already able to download from Netflix (and BB and Amazon), I think the XBox and PS3 also can do this, so Netflix is building up streaming to a good assortment of boxes already connected to your TV. Again, no additional out-of-pocket spend to dual-purpose my device.
It won't be long before the media industry catches on to making all content available for viewing whenever the consumer wants to see it. If I want to watch a movie from 1939, and they get a cut from it, that's money that they would be not be getting by keeping it locked up. Maybe it isn't (or wasn't) a popular title, so what? Making it available makes it possible to profit from it.
We've got the mechanisms in place, all they need to do is open up their content, which has been THE biggest problem all along. They aren't completely solving it here, but it seems like a step in the proper direction.