Up to 5 minutes per hour of ads, one device, streaming only (no downloading for planes/etc), 720p max, 10% of the catalog unavailable. That’s a hell of a lot of compromises.
Not really -- it's a fantastic price point for an individual subscription to watch on your laptop or iPad. Where most people don't care about 720p vs 1080p anyways. If you're a college student or not making a lot of money, and therefore not traveling a lot -- this is awesome.
If you watch 10 hours of Netflix a week, you're watching about 3 and 1/2 hours of ads a month. All to save $3. Not to mention having access to less content.