The 3DS's resolution is low, yes... but the quality of the videos still has the ability to look better. They seem to have been downsampled further in lesser quality, not resolution. Separate issues, guys. I've made movies for my Play-Yan micro (GBA resolution) that look better than the 3DS's youtube app in terms of quality (kilobits per second). a GBA-resolution video of 512MB looks great, even on the SP's big pixely screen. There's no reason the 3Ds should have to further downsample a youtube video to the degree that it is. Muddy pixelation isn't needed. I doubt the Netflix app looks that bad.