It's even further cheaper when you place a value on your time spent watching Hulu's commercials. Not to mention the decreased entertainment experience from the commercial interruptions.
Hulu ads aren't bad. Mute the computer and switch to another tab for thirty seconds. Far better than ads on actual television, since you know exactly when they're going to end, and even if you miss it you can always rewind.
It's all about perspective - when comparing to actual television sure Hulu's single ad is a welcome breath of fresh air. When compared to Netflix, iTunes, Amazon, DVD, etc ads become distracting whether it's 1 ad or multiple ads - you are interrupted from the task at and either way.
BTW I certainly don't want to come across as sounding entitled. I realize advertisers help pay the bill so that I can enjoy great shows.
I like of Netflix that the kids can play it on the Wii while I watch something else on the laptop. Some newer big-screen TVs also come Netflix-ready these days. Does Hulu play on anything non-computer?
Still, at a significant fraction of the cost of a Netflix subscription, which really does give value for money, I can't see myself ever paying it.