I think folks are missing one aspect of the Netflix-style experience; discovery. Sure, the joy of flipping through the sci-fi/fantasy section in the local bookstore or library is an unparallelled experience -- but I've found book discovery via Amazon to provide me with far more than simply gazing at shelves.
It's not only the product consumption experience that is changing, but how we interact with books in general. And while I'm a big fan of libraries, we're all getting used to metadata, social annotations, reviews and suggestions -- add that to the ease of access an 'all you can eat' approach provides, and I for one am looking forward to where it leads. (mind you, I read anything from 10 to 20 books a month, so I'd definitely benefit from this kind of service!)