From what I can gather, it seems that Netflix's product development team is frustrated to find that there is no integrated support for DRM'd media streams provided by the OS. From here, he jumps to the conclusion that the best approach is working with individual handset manufacturers to patch in support for this at the OS or kernel level. This is difficult to understand.
It's an operating system. You build things on top of it. One does not go to every PC manufacturer to add a "feature" to one.
Spectres of "fragmentation" aside, let's remember that these phones are real computers running a real Linux-based OS that run real software, written in real programming languages like C, Java, and Scala. They also have support for encrypted transports like SSL and high-quality video codecs like H.264. Heck, Adobe's even done it - secure content streaming on Android is possible, and works fine (speaking strictly of the transport and decoding layer - leave it to the bloggeurs to hash over what happens when you paint content on a screen).
These facts suggest that implementing secure DRM'd video streams and a player for them is not only possible, but much easier than working directly with two of the most backward-facing industries in technology now (film studios and mobile phone providers) to add this functionality.