Yes, it does work. I originally purchased one at WalMart for $898 (wrong price on the shelf, but they honoured it). Anyway, I set it up, used it, and didn't like the picture. The 3D was awful, half resolution, but the Smart TV feature was cool.
$1200 is a bit much, considering I've seen it on sale at the big box stores as low as $999.
So after playing around with it for a few days now...yes netflix canada works perfectly (although rather low-res, at least for what I have watched so far).
As for the picture, I couldn't disagree more. The picture is OUTSTANDING! Although, it took a ton of tweaking settings. The settings out of the box left me thinking the picture was awful...but after some playing around...it is incredibly good.
Anyways...thanks to those who responded, and hopefully this info will help others in the future.