I know it sounds like an exaggeration but what else can I say, it really happened. I was surprised they didn't suspend my account from having to report so many damaged discs as well. After the 3rd disc I got cracked I googled the problem just to see if there was anyone else out there...
I just switched to Blockbuster last week. I liked Netflix up until I added the blu-ray access. After they sent me the 10th straight cracked blu-ray disc, I gave up. I've had a couple blockbuster blu-rays come already and none have been cracked.
I'd say go with Netflix if you aren't...