Anyone who has been paying attention has known this for about as long as it's been happening. They announced their intentions long ago:
"The goal is to become HBO faster than HBO can become us."
Their aim is not to be a third party catch-all content provider. They specifically want to compete with premium cable and network television stations, and they've been moving in that direction. They seem to be doing fine with their plan so far, and people don't seem to miss the stuff they aren't getting anymore -- at least not enough to hurt their hold on the market. So, call the plan a success.
On a personal level, though, the cult of Netflix wore thin a long time ago. I'd rather use that $10/mo to pay for services that are more in line with my interests.