Netflix has finally made good on their promise to release a video app for the iPhone and iPod touch to match their early iPad offering. Now Netflix subscribers can stream their Watch Instantly shows to their handheld devices, as well as search and manage their queue. In addition to renting DVDs throuh the mail, Netflix has a large library of films and TV shows available to watch via streaming video. Subscribers to the service get unlimited access to as much of the “Watch Instantly” selections as they want.

The latest update to the Netflix app is out with full support for Instant Watch on iPhone and iPod touch. That means you can access your Netflix account anywhere you have Internet access. The app allows you to find movies or TV shows on the go, add them to your queue, and now even stream any of the Instant Watch collection. I’m still uncertain how many people really want to stream a movie or TV show to their iPhone or iPod touch and actually watch it on the device.

Netflix is the popular movie service where users can create a list of DVDs they want to watch, which are then mailed one at a time. In addition, Netflix has recently added a streaming component (“Watch Instantly“) where you can watch from your computer.

The problem with this, of course, is that the service simply isn’t obsessive enough. Sure, you can update your queue whenever you’re at your computer, but what if you’re out walking around, and you suddenly realize you need to watch The 400 Blows this week, or move Tommy Boy to the top of your list? What then?

Fortunately, there are a slew of apps for managing your Netflix account from your iPhone or iPod touch, and today I’m looking at three: two free, and one available for $0.99.