This is a dumb question but ...

Why doesn't Netflix or Hulu or other content providers use this technology to play their content on users browsers. Wouldn't this relieve the bottleneck of two many people trying to stream the same content?

Not sure what hulu does. Netflix has been delivering boxes with lots of drives to ISPs to cache video content closer to the users.

http://gizmodo.com/this-box-can-hold-an-entire-netflix-15925...

I do think something like this client would be beneficial for them.