I'll grant you #2 since tastes vary and even the catalog varies from month to month. But for the vast majority of people, #1 isn't true, and #3 is irrelevant. Neflix's (growing) subscriber numbers are all the evidence you need for that.
Netflix's client has some warts but if you're looking for a specific movie or show it completely gets out of your way. HBO and APV have somehow managed to make it difficult to find things you know are already there.
I'm not really sure what you're looking for, then. Your wish for the ability to "legally pirate" content makes no sense, since by definition that's an oxymoron.
I don't agree with that. I'm a technically inclined person who has in the past done a ton of pirating, but nowadays I will always reach for a legal streaming service first. I actually do find, say, using Netflix much more convenient than firing up a usenet or torrent client and pulling down a video that takes 5-10 minutes to download.
And that's just me. The masses of non-tech-savvy people out there don't want to deal with pirating things. For these people, paid services are far, far superior.
