It's too early right now and I feel the device needs to make strides for it to be viable for most. The various youtubers pointing out neck strain issues underscore this. We can't gauge much from early gripes on a low production device that hasn't launched yet.
Netflix's engineering staff is expensive and I imagine they learned some interesting lessons from experiments like Bandersnatch. No need to make bets for the sake of innovation, let things play out first. I'm sure there is some signaling involved for the sake of investors showing they're prudent here.
All I'm saying is - to your point - the market may be shifting to where personal consumption devices like this make sense. It's not replacing a TV so much as a laptop.
For some early adopters the experience may be far superior, and if so, a next generation device that cuts the cost and size in half may be the thing that launches things forward. Like the iPhone 3G.
Or it could be sort of a wash and go the way of the 3d TV craze from 15 years ago.