I'd like to have a small computer where I can insert a DVD and press one button and walk away (and latter remove the disk), and then the movie is available to stream from my small media computer to my home network. It could look up the right metadata online, or you might pay a very small amount for a service that maintains accurate metadata.
For as much as I watch TV I could probably buy the few shows I'm interested in on DVD for cheaper than what I pay for Netflix. Until I get a media server like I described though, it's just more convenient to pay for Netflix.
I suspect that no such products exist because copying the DVDs would almost certainly get the creators of the device sued into oblivion.