You can already do this, you just have to do it yourself with a bunch of clicks.
No one is compelling you to pay for a streaming service. In fact there are many ways to pay per-show/movie if you prefer that model, which range from a short term digital "rental" to physically owning a disc.
Applying this to other monthly costs is also an interesting exercise: If I don't just my gym membership, do I get that back? If my house doesn't burn down, should I get a refund on my fire insurance?
If your service doesn't work for a significant period, you likely can receive some compensation enforced by a government body.
Keep in mind that streaming services are sold as a reoccurring monthly service, it is remarkably easy to cancel service, and they fulfill the full month even if you cancel early. It is difficult to regard the those business practices as deceptive. (At least in the case of services that I have subscribed to.) This is very much unlike the horror stories that I have heard of for other subscription services, and have experienced in a couple of cases.
On a personal level I also think there's paradoxical social net negatives from overly-insulating people from their own poor decisions while in tandem raising barriers to entry for services (basically, why I choose not to live in California).
2. It's insane to want the government to "protect" you from … not using Netflix. You seriously think it's okay for the government to force this?