Netflix is not an issue for me on the apple tv at all. the integration is awesome. It just matters how your stereo is set up through your TV. For example, if you had pandora or spotify and your tv is running through good speakers, you can control your music with your iphone or ipad. you can do a photostream through your tv, show your iphone videos on tv..put your web browser up there..its really versatile.
I got mine as a gift, and didnt really start using it much until I figured this stuff out.