The good/old subtitles in the ASS format required a more complex playback system than what Netflix/Hulu (and maybe blueray players) currently offer. This could be worked around by burning the subs into the video stream, but then you need to keep separate copies of your (large) video files for each subtitled language.
That doesn't seem like it'd be such a huge problem to me, but what do I know?
The post does a good job explaining the effective monopoly system at play that prevents real competition to provide any pressure to improve or maintain the prior quality.