[QUOTE="mrglorious, post: 5513925]Netflix will always work with a internet connection, I don't know why they say you have to be signed in.[/QUOTE]
1) So that you would "have" to sign up for PSN.
2) It just checks that you have a valid sign in...after that, it doesn't care if the PSN service is down or not.
I think that they should make it more steamlined, it should be tied to an account and thus would not need to be checked everytime. Netflix is kinda lazy with updates...this shouldn't be a tough update.