Earlier quoted context omitted.
Their DVD service may still exist, but my DVD player does not.
That's not really a flaw of netflix, is it? If you believe it is, I'd love to understand your reasoning.
The value Netflix provides is primarily convenience. There are other ways to watch movies and TV shows, the reason to use Netflix is that it's more convenient than the alternatives.
Having to deal with physical media (and wait for them to be delivered) is less convenient than other alternatives to Netflix. Therefore, it's a flaw of Netflix.