Based a a number of complaints posted on the Roku customer forum, it appears that their little $99 Netflix streaming device has spontaneously suffered from a serious drop in video quality.
Roku engineers have acknowledged the problem, and are said to be looking into it. At this point they a directing blame at Netflix claiming that recent changes to the content distribution network (CDN) may have contributed to the problem, but the lack of complaints on other Netflix compatible devices like the Xbox 360 and the Samsung BD-P2500 / BD-2550 Blu-ray players make this defense unlikely.
Apparently, the problem is serious enough that some are experiencing quality drops of 50% or more with extremely low connection speeds. Just how widespread this problem is remains to be seen, so I have to ask: if you own a Roku, have you noticed any quality issues lately? [Roku Forum via Wired]