I am inclined to agree on this. Unless other ISP's offer something better, I feel more people will move over to iiNet to take the benefits in. Especially when NBN finally rolls out in most of Australia.
Netflix is huge in the states and I feel it will be the same here in Australia with already thousands using proxy servers and accounts to gain access to the US version. Once its formally up and running I suspect most people will cancel their proxy subscriptions and instead sign up for the standard AU version.
The biggest concern now is their pricing model for Australia. Otherwise some might find their proxy and US Netflix subscription to be cheaper in the long term.
It will be interesting to see how others like Foxtel will react to Netflix in the short term.