My current tv is only 720p so I don't know how crucial HD streaming capabilities really are at this point. But thanx for that info - I did not know that.
Currently, the HD content coming from Netflix is 720p.
It's true that the SD content (DVD quality) from Netflix streaming is good. Also, most of the Netflix streaming content is only available is only SD. However, 720p is way better than SD and it will look great on your HDTV. (They have plans for 1080p content streaming, but it's not available yet.)
Moreover, there is no need to knock your TV as "only 720p". Here's the truth: If you're sitting further than six feet away, and your television is 50" or less, the difference between 720p and 1080p is (for all practical purposes) insignificant. It's a specification on a sheet of paper, rather than a meaningful difference.