Which is better? Well that depends on what you are after. Netflix has a larger catalogue of shows where Hulu Plus seems to have more of the newer shows.
This is probably a reflection on the fact that Hulu is owned by the networks who create many of the shows and thus don’t have the same licensing issues Netflix does. But that doesn’t mean Netflix doesn’t come out swinging with some great content itself.
Russell Holly has summed it up pretty well in this article: Netflix or Hulu Plus – Who best fits your streaming needs?