According to a Reuter's article, Netflix is going Blu completely. It hurts big time, because I actually have an HD DVD at the house - Face/Off.
I have both now, but I still prefer HD DVD over Blu due to the Web features and lack of region locking. Oh well - the ignorant masses have spoken and have no probs trading freedom for a half-baked format.
Here's the story: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSWEN388420080211