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Hulu definitely has potential. The video plays very nicely and even though there are commercials, they only last about 30 seconds and only one commercial plays then back to the show (so far).
I do think they need to fill out their content offering. In some cases all they have are clips. Some shows have all episodes of one season but only a few episodes of another season (if multiple seasons are available).
Hulu has a lot older TV shows and even some currently running shows (Heroes, JourneyMan, The new Knight Rider pilot/series, Terminator-The Sarah Conner Chronicles)
Hulu claims to have HD content but I haven’t found any full length HD shows only a clips gallery.
All in all viewing Hulu has been a positive experience so far.