It's not Netflix's fault. Just like we all hate how the Neilsen rating systems works (something like 1 Neilson household represents like 4500 households?) and how we can't all watch our favorite TV shows online the day after they come out and how movies theater tickets are like $15 now and how Kindle books cost way more than paperback books - it's the studios/publishers/etc. pulling the strings. They don't understand how people want to consume their content. It's the same thing that happened with Music.
Netflix would have everything on streaming if they could. I'm sure they are quite ready for the DVD model to go away. I wonder if there isn't some element of "look, our customers all dropped DVDs, they ONLY want to stream" in this move, to give them more leverage to stream everything.
Netflix has/had contracts with the studios that are coming up for renewal, and they will probably have to pay big $$ to renew them. That's why some stuff that used to be available for streaming is gone
I know Redbox is $1 ($1.50 or $2 for Blu Ray), and we do use it, but my husband got a movie he wanted to watch on Blu Ray and a client called and he didn't watch it and three days later, it's like a $6 Redbox DVD. Plus, they only have new stuff. It's $3-5 to rent HD on iTunes. So in the end, Netflix is worth it to us, for now.