I think this is a good decision on your part, but so you don't come screaming back to us about being mislead, here are a few caveats:

1. Flash video from youtube seems to work very nicely, but when streamed through other sites, many of the videos show a slow-down. Judging from reports here, this doesn't seem to be as much of an issue on newer firmware.

2. Non-youtube streams have worked only with moderate success. BBC iPlayer for instance was pretty much unwatchable.

3. There is no flash 10 support YET, meaning no HD, although a pre-release ARM/OMAP distro has been shown in some videos and speculation is that it will be released Q1 2010. This should also improve overall performance, since it will enable hardware rendering, rather than puting it all on software.