I don't doubt that people are having issues, but I think that people are too quick to blame Netflix and not their ISPs or local configurations. I have a similar experience as KennyJ when streaming Netflix and IIRC, both of us use FIOS as our ISP.
Also, people are quick to pull out "but my speedtest says" and seem unaware that 1) a short lived speedtest is not representative of a long lived download 2) the route to the speedtest is likely different than the route to netflix (some ISPs even host speedtests locally to make them seem faster) 3) some ISPs have a truly stupid feature known by marketing names like "speedboost" which allow an uncapped transfer for a short time and then after a while throttle a connection. This allows a speedtest to complete before the throttling kicks in, and is almost a worst case for streaming (because the dramatic change in available bandwidth causes the TCP congestion algorithms to engage and performance collapses until a new equilibrium is reached). (It's amazing that they could keep a straight face when selling that as a feature.) 4) some ISPs reportedly go so far as to boost the priority of speedtests (especially ISPs that are bandwidth starved, so they can lie to their customers and say everything is ok).
I have speedtest results that show I get my max bandwidth, but I also routinely download hundreds of megs of files at my max bandwidth with no sags or stalls--so I actually trust that number. I also recommend that people try http://www.pingtest.net/
also, as the latency numbers help establish whether the traffic is bursty independent of how fast the connection is.