A few comments on the 1.1.9 release, which should answer some questions (and probably prompt more questions):
This was just a 'quick fix' in order to <somewhat> address the issue with those using the silverlight player.
These modifications do not force the use of the Silverlight Player, it really just gives you the 'option' to view the movie using the web browser versus streaming directly to Windows Media Player.
When using the web browser, netflix chooses which player to use. If your setup to use the old netflix player, it should still use the old netflix player. If your setup to use the Silverlight Player, it should use the Silverlight Player.
To use the web browser (instead of streaming to Media Player), you have to set the option in Settings->Movie Player.
When using the web browser, you loose the ability to put it into Full Screen or control the movie player features (i.e. Pause, Play, FForward, Rewind) via the remote - you have to use a mouse (or mouse emulation) device. The "Back" key and "Stop" key will close the player an return to the vmcNetflix app. One advantage is that when you "stop" and then replay the movie, it should start where it left off - this is a feature implemented in the netflix player.
At this point I don't know if streaming to an extender (or XBox360) will work using the Web Browser interface. Also, I don't know if the ability to control the movie player using the remote will exist either.
- EricL