Well, at least you said something to the company. Although you have the option to switch to Vudu, that's only effective if you Netflix you're cancelling and why. On a side note, I don't see Vudu a full competitor to Netflix for various reasons--disc rentals, download vs stream. It's more a competitor stuff like iTunes, Zune, and some of Amazon.
From what you describe, you go a rep, that just doesn't know they product well, and there wasn't a script for what you were asking. At this point with Netflix, they're only doing more a basic support for Instant View. I think more of the HD content is available on the PC. If you want the 1080p video or DD5.1 audio, you need a setup box such as the Roku, PS3, AppleTV, and so forth. They have millions of users for STB, whereas the PC is in the thousands. Heck, if you're ISP participates, you can get their SuperHD, but can only access it through the PS3, Roku, and a few other STB.
For the PC, there is one exception, but not really. If you have WIndows 8, you can get the Netflix app through the app store. This Netflix is not used through a web browser and it accessed through Metro. I've read it may support 5.1DD.
It should be noted, I've been using Netflix since May 2000, started using Instant Watch since 2008 or 2009, when the PC was only option Pre-ordered the Roku box (was originally called Netflix Instant Watch player by Roku), Beta tested the 2nd generation Roku box. Needless to say, I've seen and experience various changes of the company. I started with them right after they offered unlimited time rentals on the discs.
And as someone who worked in customer service in a call center, I have an idea about customer service. And what you got, was not very good. I can tell you one thing, companies don't want to lose customers, especially if they can make the customer happy. It costs three times as much to get a new customer as it does to maintain one.