Update: Netflix spokesperson Steve Swasey said that the decision to eliminate Profiles is a "final decision." Swasey also had the following to say:
Netflix is a dynamic company that continues to evolve and grow while consistently giving members to best online movie rental experience.
Think of where we were when I joined a little more than three years ago. Then, we had 2.6 million members and 35,000 titles on DVD. Today, 8.2 million members, more than 100,000 titles on DVD and more than 10,000 choices of movies and TV episodes to watch instantly on the PC and the TV.
With such dramatic growth and site and service improvements comes the occasional adjustment.
While discontinuing the Profiles feature is not desirable for the passionate folks who use it, the decision will ultimately benefit all Netflix members. By discontinuing the feature, we will be able to put more focus and resources site and service improvements that benefit everyone, consistent to how we have grown the service over the years.