PS3. It does netflix wirelessly (a lot of the standalone players don’t offer wireless connectivity).
It’s also very easy to update the PS3 with the latest Blu-ray firmware, which means it will support all the latest features.
The PS3 also does a fantastic job of upconverting regular DVD’s. They will look fantastic.
Upconverting! Another great point I failed to mention.
That and the wireless connection should justify the extra $100 to the wife. ;o)
And if you have kids or grandkids...