I just watched the thing myself over on Netflix too.
I don't know if I'm special or not special, but I don't have cable anymore - I would bet that Party Down's target audience are similar to this ... I realized at some point that the things I wanted to watch were getting drowned out by 100s of channels of horseshit and that I was paying for all of it. So I cut it, thus saving myself a $100ish bill every month. I watch stuff on Netflix or Youtube clips. And there's definitely a major shift toward this way of watching, yes yes? Every time I go on to the thing, there are more and more TV shows dumped in there. Not to mention movies, old and new.
And DVD sales are falling ... I'm thinking that there's probably some kind of licensing rights to put the shows on Instant Viewing, right? So I bet that it's only a matter of time before either A) Netflix monthly rates start to go up, and/or B) Nielsen or some such body tracks Netflix viewing as first run viewing. If that makes sense.