At the risk of sounding like a quaint, out-of-touch old man, I would actually prefer that it be at least mostly fully legal. If everybody freeloads, nobody makes Futurama or Pixar movies. As much as I believe in, love, and participate in open source software, I believe the forces that enable open source software scale poorly to other fields.
I don't even bother with Netflix. You can download any new releases, often before you can find the DVDs (especially during Oscar season, when all of those screeners end up leaked) and full seasons of any TV shows. You do usually miss out on the commentary though if you're into that.