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It appears that our original suspicions were accurate, Canadian Xbox 360 users will get their hands on Netflix alongside the upcoming dashboard update.
Playing with the new Xbox 360 dashboard last night, we discovered the addition of Netflix to the Canadian Video Marketplace. In testing, the application performed as well as the service has in our experience on PC and the PS3.
Unfortunately, the application does not have any support for an "Instant Watch Queue," as the feature is completely omitted from the Canadian version of the service. The Canadian Xbox 360 application does support searching, an addition also making its debut to U.S. Netflix customers in the upcoming update.
http://www.shacknews.com/onearticle.x/65812
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Now to find out when that next update comes out...