They used to have all their content come from other studios, and they got to see how well it had done in the outside world at the time they were making their deals.
Now they're producing their own content, many of their previous background-noise or binge staples have moved elsewhere, and their productions are overwhelmingly lowest-common-denominator clickbait. There's still some quality stuff, but it's much harder to find than it used to be. If you're looking for an already-well-known quality show you can search (e.g. if you want to watch The Office a few years ago on Netflix). If you're looking for something new that's going to appeal to you, it's a lot harder to find in their sea of junk. Reviews can get you so far, but Netflix no longer then has any edge on alternative platforms which the reviewers are also talking about.
So the premise of "sooner or later pumping out junk food is going to turn off viewers" seems to click with your cohort (mine as well).
Considering that the commonly mentioned stats on TV watching show that a lot of people is watching (or maybe more accurately, keeping on) TV for hours every day, the latter extreme should be common.
In this sense, bombarding the audience with junk, or at least, pushing very hard, is a strategy that, I think, is productive, in the same sense as drug dealing strategies are.
I'm towards the former extreme, however, I'm certainly not immune from their strategy. I still feel some need to "chill" and therefore I somewhat tolerate their strategy (although, I also use it for learning languages, so there's another motivation). The irritation is building up, though.
I feel like I'm in a minority these days. My Netflix list is longer than I can ever hope to finish. I add stuff on before I finish watching current stuff.