(Source: http://www.pcworld.com/article/207925/new_ps3_netflix_version_leapfrogs_xbox_360_best_version_yet.html?tk=hp_new)

Big news for PS3 & Netflix owners, an update will be coming on October 18th (Monday) that will add the Netflix application to the video tab of the dashboard and thus the disk will no longer be required.

Additionally, 5 long awaited features are going to be added along with a complete UI overhaul.

In summary, here is the feature list...

1. 1080p streaming (not 1080i, Sony made a mistake in the source video mentioned above)
2. Dolby Digital 5.1 support
3. Search functionality
4. Complete overhaul of the UI for a more unique look than the original, bland UI
5. Analog sticks will work correctly with the UI

The source link at the top has the full story as well as a demo video of what the UI will look like (approx. 2 minutes in length)