The first part does not imply the second. I know there are legal/licensing reasons for encryption but technology that is going to run the world of tomorrow should not be encumbered because of contractual obligations of today. I fail to see the technical reason why encryption is necessary for Netflix. HTML5 is a technical spec. It does not need to be riddled with extensions to fulfill business needs.
I can't view a stream if I'm not a paying member logged in to the website or XBox/Roku/AppleTV device. Once I am able to view the stream, encryption or not, I can record it through a number of hardware/software mechanisms if I am technically savvy. If I'm not technically savvy, I can't record it regardless of encryption. If I can somehow access the stream without logging in, say the files are stored on CDN and available to everyone over HTTP(S), then you should work on preventing that.
W3C/HTML5 are designing specs for the long haul. I am pretty sure I will be writing web apps in a decade too, like I did a decade ago. iTunes no longer has DRM'ed audio. Who knows, in a decade, Hollywood will give up DRM too, with pressure from Netflix, Apple, Amazon, and Google. But if engineers at these very companies that should be pushing for open-web, insist on burdening the spec to cope with DRM, I doubt we'll ever see that future.