With NF you get three movies at a time, and you can get plans with more. It does require a little planning, but right now, the quantity of content you can get in a month for the price can't be beat. If you think it's so stupid, what do you propose as the smarter alternative?
For iTMS to beat it, it would have to match netflix's pricing as well, which would be $1 or less per rental. I don't see that happening. They'd also have to have better quality and include all DVD extras with all movies.
Until then, I'll happily stick with netflix.