Now that every content owner is starting their own services, we're losing the thing that made Netflix revolutionary: loads of quality and diverse content under one subscription.
Personally, the shows I'm interested in are spread across a half dozen services... and only one or two really warrant full engagement (versus "background entertainment")... so obviously it's back to bittorrent for me.
The thing no one really talks about is that cable companies never really made (relatively) that much money. The content producers are the ones that have always made the real money. Most of your bill goes to them. Ultimately, Netflix is just another middle man between you and the content. You still have to pay for wires but now there's another hand taking their share. In the long term they can't be cheaper.
The reason it was cheaper was that for a long time they were seen as free additional revenue for content producers. Like someone making a living off of discarded garbage. Eventually the people throwing that stuff away wise up and want their normal cut. We are pretty much there at this point.
You are forgetting at a amazingly low price. People are cancelling Netflix because it's "too expensive now" while it's still quite a bit cheaper than cable.
People have an hard time considering paying 2 streaming service, while it is still cheaper than cable service.