Google is very smart. Between this, Chromecast, their Nexus line of phones/tablets, their unbelievable Google Fiber that's amazingly cheap, and YouTube starting premium channels, they are slowly cornering the internet/entertainment industry. If they buy Netflix, it's over IMO. I think that would be a VERY smart move by them. They would put cable/satellite companies out of business.
Google Fiber alone is creating a second Silicon Valley in K.C. It's so fast and so cheap that businesses are relocating there just for the internet. St. Louis City F'd up by not getting Google to start their GF network here.
So yeah, I'd say Google is a great investment. I just worry about them getting too big. Usually when companies get too big they stop worrying about the customer and just worry about the shareholders and that's when they start doing horrible, horrible things.