If you subscribed to Netflix back then, you probably subscribed to both the streaming and the disc-mailing plan, because there were enough things you couldn't get on streaming, so getting the discs was important to fill those gaps.
That's true today, Netflix just misses those gaps outright now.
I remember ads that exaggerated things that suck about rental stores. One of them was about all the cool movies being thrown out and replaced with 30 copies of Pony Adventure 4. They never explicitly stated that Netflix will always have the solution to those problems forever, but they implied it as hard as they legally could.
It wasn't until studios caught on to the fact that streaming was going to significantly eat into cable subscription revenues that they began pulling their licenses so they could start their own streaming services.
It was only after their success did all the other producers feel comfortable that this was the future, started building their own apps, and then had to wait for their exclusivity contracts they had given to Netflix expire.
There was a lot of fear around what would happen to Netflix when those contracts would expire, and that’s how we started getting their originals like Stranger Things.
We're actually back to normal. TV before streaming was A LOT of reruns, trashy talkshows/reality TV, soaps and quiz shows.
IMDB Top shows ratings https://www.imdb.com/chart/toptv/ - the bulk of the top for scripted series are cable shows (especially HBO)
RottenTomatoes fan picks https://editorial.rottentomatoes.com/guide/rt25-fans-top-tv-... - very similar list
Hulu was created at the same time, and launched in the same year as Netflix's streaming service, specifically to compete with less-convenient pirated streams of current-run TV with a free-the-next-day-with-ads alternative. And that stuff was never on Netflix at the same time.
High-profile not-on-Netflix-streaming-for-first-run things from the 2007-2014 time frame: The Office, Game of Thrones, Walking Dead, and honestly basically everything else broadcast and cable made during "Peak TV." It was big news and considered a big bet when Netflix debuted their own high-budget first-run content with House of Cards, because of how weird it was to see Netflix competing in the brand-new show space.