When you say "had more quality content", do you mean that some content was removed ? Or that the rate over which great content is produced has decreased ?
Yes, once Netflix proved that streaming was commercially viable, they rapidly got competition bidding for exclusive streaming licenses and then content owners pulling content for their own exclusive streaming services.
So, yes, a lot of content was lost and more is being lost. OTOH, they've ramped up exclusive acquisitions and content development.
Yes. Content would be removed. Especially top rated IMDB movies. Instead there would be more B-movies. In-house shows made it better, but there weren't enough of them.