Thanks everyone for your replies. I went out and bought a WDTV (Thanks 905shmick for the recommendation) and a Sony something-or-other with GoogleTV. They both meet all my original requirements, but I've determine I need a bit more than they offer. Now I'm going to add another requirement though

Internet Browser from which I can access Hulu.
The GoogleTV box has Chrome, but Hulu blocks access from it and directs you to use their android app which A doesn't work on GoogleTV devices and B even if it did, most of their good content isn't available in the Hulu plus app but only through the browser (arg!).
Here are my updated requirements, looking forward to your suggestions:
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- Device that can stream NetFlix
- Has DLNA client that supports h.264/MKV (My NAS runs a Twonky DLNA server and some media server)
- Has a remote or supports a wireless keyboard
- Has a browser (so I can access Hulu)
- Is not a GoogleTV device
- Ideally can change DNS on the device (not a deal breaker, but a nice to have)
Thanks
EDIT: By the way, Netflix on the GoogleTV box by Sony was extremely fast compared to my Samsung BluRay.