As for the question, Yes, I'm really grateful you guys are doing this and, on top of it, sacrifice your free time for it. My japanese is good enough to get what's happening in a show, even understand a few details, but is still so far away from a level where I can enjoy it as much as I do with your subs. Without them I would have missed so many awesome moments, and know much less about the girls. Again, thanks a lot guys.
Regarding the release format, I actually prefer soft subs over hardsubs or streams. I usually download and watch a show when it's available on H!O or elsewhere, so when subs are released, it's actually pretty convenient for me, since I already have the video file. gx240 mentioned some people might not know how to play .srt or .ass files with a video, but posting a short "how-to" tutorial could easily get rid of that problem (if you haven't done so already). Getting the raw video file could pose a bigger problem, since there are legal issues you probably have to deal with, but maybe just a little "google the name of the sub" posted somewhere might help.
Anyway, I think the biggest problem is, people take subs for granted. They don't know/care how many hours it takes to finally release a high quality subtitle and just demand more. As fast as possible.
Well, all I said isn't really that helpful, but I just wanted to add my two cents, and tell you guys that I really appreciate what you are doing for the fandom.