Yes you can watch downloaded/ripped 2D and 3D videos in Oculus Video (in a Cinema, home theater, on the moon, Ant cinema, and void) and also new in Milk VR on a curved screen. Aslong as they are in a supported format like mp4 and mkv and audio like AAC and mp3, sadly AC3 and DTS are not supported yet.
You can also watch the videos you have recorded with your phones camera in the cinema.
Best video quality is 720p for 2D videos and 1080p for 3D videos, but the actually perceived resolution quality is more like 360-480p but it feels like you watch it on a massive cinema screen.
In Netflix you are sitting in a cabine and watch the shows on like a 110" TV. Hulu is not released yet.
So you're saying 720p 2D movies look better than 1080p 2D movies on it?
And is there any way to hook up a blu-ray player/blu-ray drive to the thing and watch blu-rays/DVDs?