Netflix has been really good to us over the years. They're the only company that gave me a price cut on my existing service and added brand new features with no additional charge time and again. Let's not forget that rentals were $4 each and $2 shipping when the service first launched, and that the original three disk plan (no streaming, obviously) was $20.
All this talk of threatening to cancel is misguided; Netflix has always planned to phase out shipping discs, and this is a step in that direction. If you go to their signup page and read the section about the service, it doesn't even mention DVDs, it only mentions streaming. You have to click on a separate section to find out they even ship DVDs anymore.
So, yeah, I'll be going with the streaming only plan, canceling my subscription to DVDs. For DVDs, I'll probably go with RedBox, but that's pretty rare, what with Netflix, Amazon VOD and Hulu.