My point is that many of the engineering challenges come from self inflicted wounds that could be overcome with more flexibility.
Giving the user a choice to pay less and run their own binary of netflix would solve most of those issues
1. Shitty connection: no problem, just wait for the movie to load.
2. Preemptive download: on demand pre-load
3. Stream optimization: would be solved by local caching and P2P offload
4. Mobile devices: either caching there (already a feature) or NAT punchthrough, accessing movies you already preloaded in your home infrastructure
5. Naive view of the world: I think many things we do nowadays would be considered naive. What, a computer the size of a chocolate bar in the hand of everyone? This just shuts the discussion off of new ways of thinking. My idea could be technically bad, but "naive" is just a way of saying "out of the common discourse".