I use an E350 in my HTPC. It can't play HD Netflix because Silverlight doesn't properly support hardware acceleration. 'Regular' Netflix plays just fine as well as YouTube, Hulu and properly encoded 1080p content.
That said, I agree... go with either a low power Intel (i3, pentium, or celeron) or go for an AMD Trinity. If you find yourself needing to do software decoding of a video file, you'll be glad you have the CPU muscle to do it.