Yes, it's ridiculous that in 2016, I'm still regularly getting bits via snail mail. DVDs are sometimes scratched, and my player often forces me to watch previews. It's terrible.
Except for the selection. Try this: go to http://www.imdb.com/chart/top, then start searching for those on https://dvd.netflix.com/. I tried a few, and they were all there.
I don't have crazy weird esoteric tastes, but I like to be able to say "hey, I heard that Movie X was good" and be able to add it to my playlist. I can pretty much always do that with the DVD service. I can pretty much never do that with streaming services. It's like, "oh, they have a sequel and a spinoff, but not the original."
I'm about 98% sure that the difference in selection is because of Hollywood being jerks about licensing, so I don't blame Netflix or Amazon. But as long as there's such a vast difference in selection, I'm going to keep renting DVDs.