I have had Netflix for close to a year and have had a few discs that I sent back that myseriously disappeared. Each time it was easily resolved by reporting it as a lost disc.
I would definitely recommend it.
I love it! I’ve had Netflix for about six months and so far haven’t had a single problem with it. I usually put things in my queue and always have one or two movies to watch while another is out or one the way. Their shipped from the next town over so I usually receive my movies the day before they say it’s due to arrive. My turnaround is usually 3 days. Four days if you count the evening I posted the movie in the mail.
moviesforme is a canadian alternative. I tried them for a few months and found them reliable and easy to contact. Their selection isn’t as impressive as netflix but they claim to be able to get whatever you request. My biggest complaint was the delivery. It seemed silly to me that a dvd coming from 3 hrs away in Mississauga took 3-4 days. Maybe you’d have better luck though as I live in a small town. 
If you allow movies with a “short wait”, “long wait”, or “very long wait” to stay at the top of your queue, they will delay the sending of the next available disc to you (Netflix waits 24 hours to see if one of the “out” movies might get returned.) If you’re just eager to get another movie, move some “available now” titles to the top of your queue.
Member for over a year. One lost movie, a few defective ones. All handled painlessly be Netflix. I love it. Turnaround is remarkable quick.
Four years of membership (grandfathered in at the 4-discs-at-a-time standard level).
Number of lost discs: 0
Number of damaged discs: 1
Turnaround times have greatly sped up for me over the last six months as well.
The only worries Netflix has ever caused me was worrying that the great dot-com die-off would claim them as well.
I’ve been a member for 3-4 months. 1 lost disc but no other problems. My movies arrive very quickly, usually a day or two after they say they sent it. And I’ve never had one arrive later than the expected arrival date. There’s a DC in Coppell, TX, so shipping one day almost always means arrival the next.
BWAH! 