I truly hate when people provide uninformative, useless answers to questions.
YES, it will let you watch Amazon Prime movies, including the free movies and TV shows available from the Amazon Prime subscription: I know, I use it. The built-in Primetime app integrates Netflix and Amazon (and Google Play videos and Redbox and your cable/satellite TV) into one app that is really a pretty nice way to see everything you have available through one app.
I have direct tv. I wouldn't use the remote to change the channel. I have my direct tv in my HDMI 1 and my GS7 in my HDMI2 port. So if I want to watch my Netflix, amazon, or M-Go I just hit the input button and switch my tv to HDMI2
It definitely does not. There is no Hulu or Hulu Plus app in the Google Play store, nor can you access Hulu from the browser. The two companies have yet to reach a content agreement... The negotiations have stretched on for years at this point. This is a well-known and much-discussed drawback to Google TV.
As with most consumer electronics, there are workarounds, however. It is possible to enable your Google TV device to play Hulu, but they involve hacking or "rooting" the box... Ever heard of "jail-breaking" an iPhone? Same concept. Essentially you are altering the base software of the device to get around certain built-in limitations. Doing this voids the warranty and can make downloading updates difficult. It's not an option I'd suggest unless you're a very tech-savvy person with an understanding of Linux.