re: Flash content: I was playing with an last-gen 11" MBA in the Apple Store a couple months ago, and saw that it wasn't capable of playing the YouTube video of All of the Lights <http://www.youtube.com/watch?v=HAfFfqiYLp0>; at 1080p without dropping frames. Obviously this is completely arbitrary because the MBA can't display 1080p, but I was a little concerned about it.
No problems. I actually have an HDMI to display port adapter from monoprice and I use it to watch Netflix on my LCD TV every now and then. Plays it fine with no stutter or dropping frames. The fans do kick on though.
Have you had problems with HD Flash/Netflix?