So personally, I think that iTunes Video is an amazing service. Quick, easy and really inexpensive. To me $2 for a 45m show like Lost is a really fair price. I bought the first several episodes last night and watched them on my Powerbook and it was a great experience. I can't wait until there's an Airport Express for Video, or someone updates Hymn so that I can convert these videos to play on any device like my PSP... or hell, I may just have to go out and get an new iPod with Video.
Well, I say that, but though I think the service is pretty cool - it's definitely not perfect. The price for the DVD box set of Lost from Amazon is similar in price to the online cost (about $35) and you get a lot more for your money from the DVD set. Not only is the video quality better, of course, but you also get bonus disks and different audio tracks, etc. The most important part of these "extras" are the subtitles.
See, even though I really enjoyed the shows, I couldn't share them with my wife. She has some problems with her hearing, and isn't a native English speaker. So in our house, the subtitles are always on the TV so she doesn't miss anything. It was like this in Spain too, actually, when I was learning to speak Spanish. Subtitles helped a ton and are a great way to get used to a new language. The fact that iTunes Video comes without subtitles is disappointing, and not only isn't a good solution in our house, it has stopped me from buying more episodes online. I'll go buy the DVD instead.
Dear Apple: Please fix this. It's a real problem those people who want to enjoy your service, but need subtitles.