Yeah, the iTunes and Netflix streaming content are complimentary to each other. Movies are usually available on iTunes the same day they come out on DVD and Blu Ray and it has a very complete collection of what is available. Whereas the selection on Netflix's streaming service is rather thin. If a popular movie does come, you usually have to wait a year or more. And iTunes is in noticeably better quality with 5.1 surround sound.
I use iTunes mostly to watch new releases of good movies. I use Netflix mostly for older movies, tv show seasons, and documentaries. It makes for a very good combination.
When you start having a busy life with kids and a job and only have time for a couple of movies per week, that $4.99 for instant gratification and better selection and quality means a lot more than the time and hassle of the "alternative" methods someone mentioned. Your time has a cost associated with it and some people's time is more valuable to them than others. Also, there is a reason most people don't rob people, sell drugs, or become prostitutes. The majority of people have a moral conscience.