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This is a great idea, my family would subscribe-- there's lots more TV content that I want to watch on iTunes than Netflix, and the lack of streaming support is actually a plus. With both netflix and hulu.com streaming the quality is spotty; on most nights the shows stutter and stop for minutes at a time. (Caused on the server end apparently-- our network bandwidth is 12mb/s down.)
Owning the shows is well received at my house; we watch episodes of Glee and Battlestar over and over again and would appreciate having them available.
What the article doesn't mention is advertising, which would be a clear win over Hulu.
