In this case advertising other Netflix shows seems reasonable. It's common practice on most content platforms. I agree it's annoying and I'd rather not have it.
That said, I like it when services play the next episode immediately after the one I just watched. I can just let it continue to progress and stop it anytime I want. I certainly don't want that interrupted by advertisements, whether for in-house Netflix shows or some other crap, it is still just advertisements and part of the reason I pay Netflix at all is because it doesn't have ads, and am willing and able to cancel my account if they turn into Hulu.
If Netflix makes bad content, then I'll be mad they're forcing it on me. But if they make good content, in the long run I'll be happy they're experimenting with as-non-evasive-as-possible ways to get me interested.
To put it another way: it's better if they get more people hooked on more shows and that leads to more subscriptions, rather than them having to resort to crappy third party ads to afford new content.
Here’s a thought... they could let users rate shows, maybe on some 1-5 based scale, then use that information to power recommendations targeted at those users instead of just randomly promoting their disgusting flavors of the day? Then instead of shows dying in obscurity people who would most enjoy them could see them! As a bonus a guy who likes documentaries and dramas wouldn’t have to scroll through children’s cartoons being recommended to him?
Nah, that would never work...
What they're doing is literally what you're saying: targeted recommendations of their shows. They're just doing it in the format of a video rather than, say, a still image.