Yes. We downgraded from the 200 to 120 package and added Netflix. We do not have Dish HD (they want $300 to upgrade), so Netflix picture quality isn't an issue because we watch SD on Dish all the time anyway.
We receive more DVDs than we stream. As was said, we try to watch the movie/show the day it was received. If we mail it back Tuesday, they receive it and mail the next one Wednesday, and we'll receive the new one on Thursday. Most of what we get on DVD are tv show series.
Netflix streaming is OK. We have a 720p tv and Netflix on the Wii. Our Internet speed is about 1 Mbps (fastest we can get). Some days we have no problem. Other days the movie buffers every 10 minutes, but that is usually Saturday afternoons. We love being able to select a movie at the last minute and watch immediately. My daughter watches quite a bit on the computer and has not complained about any problems.
We still use the video store and RedBox, but we are using them less and less. We rented two movies the day before New Years Eve (Dec 30th). We still have not watched the one (it's due tomorrow), but we have watched all five episodes of Castle season 2 disk 3 from Netflix.
If I could get a DVR with 7+ day guide that worked off the over-the-air antenna channels, I would drop Dish and upgrade my antenna. We get our local channels via Dish, but do have an old antenna that we can get them on too. We live about 50 miles out, so sometimes OTA is hit or miss. Over Christmas, I kept track of what we watched. Besides the local channels, we watched 105 (USA), 106 (TV land), 110 (Food Network), 120 (History Channel), 122 (Sci-Fi/SyFi), 139 (TBS), 140 (ESPN), 170-179 (Disney & Nickelodeon), 180 (ABC family), 182 (Discover), 183 (TLC), 202 (HLN), and 205 (FoxNews). With the exception of the news channels, we can watch everything else via the Internet (but it would require hooking a computer up to the tv). I also noticed how much time we wasted watching tv.
So yes, Netflix has prompted us to downgrade our subscription and may eventually cause us to drop Dish altogether.