yeah the recent hulu block for ps3 sucks.
my set up is i have my ps3 with a wireless router and my desktop hooked up to the same router, and i can put any media files, video, audio, pictures, anything on TVersity which is a free media server (you pay if you want to stream video to your TV, but with the PS3 you have an internet browser so you don't really need it) and any computer in my house can view it, which is handy because my girlfriend also has a laptop, so if i wanna watch something laying down in bed or taking a dump (which i havent done...yet) it works perfectly.
i only recently got cable, but that was her decision, i don't even watch it, all i did was watch the 4th of july twilight zone marathon, everything else is using my set up and netflix.
edit:
i read in last weeks issue of video business that netflix's streaming feature will be available on the ps3 later this year, which is rad.