Netflix has the better PS3 UI anyway
So MEH
If you're dumb enough to pay an XBOX Gold subscription ON TOP of your Lovefilm/Netflix sub to be able to use it on that console then you largely deserve what you get. Don't care about HD especially, it's just a bonus, I want to watch the film, not count the pixels.
(Yes I realise people might already pay for gaming anyway on XBOX but if you don't, paying two subs for the benefit of one is lunacy)