"Netflix says it’s because they can’t get a secure enough DRM system across Android devices to mollify the studios."
Here is my limited knowledge take on that:
The iPhone/iPad does not have removable storage so they can cache movies in the memory, on Android they are facing the issue of how to buffer the movie. Since you can easily access the SD Card, they really have to secure the files from pirating.
But honestly, Netflix in browsers was written in Microsoft Silverlight, they have Microsoft developers in-house -- I think they simply did not CARE about Android until now, iPhone/iPad demand warranted that platform, but otherwise they got caught by surprise with Android.
Please let us know what you think. I cannot wait to watch Netflix movies on 7 inch Android tablet.