Anywhere but smack dab in the center of the distribution algorithmic music recommendation engines fail completely (save for Pandora, which has a different small catalog problem.)
Just because no one has done it really well yet, that doesn't mean we should all go back to human-curated playlists in my opinion.
Edit to add: Perhaps part of my reluctance to rely on DJ's and human-curated playlists is a lack of trust. When a person recommends something to the masses, my gut instinct is to question motives (who is being promoted and why). When an algorithm recommends something to me as part of an unlimited service, I tend to feel like it's been tailored to me for no reason other than to maximize my enjoyment (though admittedly, the truth is that algorithms may be built with just as much - if not more - questionable bias as any human).
"Really great" is subjective in music, movies, and pretty much anything related to art or entertainment.
Netflix has it right - everyone has individual tastes, so everyone should get individual recommendations. If the quality of those recommendations/algorithms is poor, then that's where the innovation needs to happen (in my opinion).