The other downside of physical DVDs is that often, the discs we received are scratched or damaged beyond usability.
You can't do this on the Internet, though, because computers are magical and Someone Could Copy It!1111!!
They view Netflix as more of an analogue to the "TV Syndication" stage of a property's life. Until Netflix has a 'premium' club paying more for early access to new material (so that Netflix can pay more in streaming license fees), they'll continue to see it as such.
Have you noticed the Netflix and Redbox release windowing? First sale, what first sale?
Unfortunately, I'm starting to think the only thing that's going to get consistent CC support in online video is a mandate from the federal government -- that was what it took in the early 90s to get caption decoders included in every TV 13" or larger.
Mail is only a temporary problem if you define "temporary" as "ten to twenty years". There are plenty of people still stuck on dial-up.
Nobody is going to run fiber ten miles outside of a city of 20,000 people just for me, and apparently the movie studios don't trust me enough to slowly pre-download Watch It Now movies during sleeping hours.
So you're probably not doomed. That being said, I am against any reduction of USPS service and in favor of caching Netflix Watch It Now movies, as you have mentioned.
I still only check the mail on Saturdays when I know a movie will be waiting for me.
This change might hurt them in the short run, but I would think Netflix would love to be a streaming only company!