Yeah. OTOH, they're realistically the only game in town if you want this sort of thing, and it's not such a high cost (the fee or the ads) that it destroys my interest.
I've been on the preview a while now. App works OK--has some bugs re: queue management and subscriptions, but as a viewer works fine. I got decent video over 3G, though the non-HD stuff did strike me as unusually pixelated. I think there might be some significant quality loss in however they're transcoding it.
I'm on the fence about continuing. I'm trying to watch less TV, and I'm unclear on whether the expiration practices will leave Hulu as a workable library of seasons or not. It might still be worth having as a Netflix supplement though. The combo of the two really gives a rich set of content to iOS devices. If only CBS would play the game with someone...