Sure. But they are still at best delivering "the most enjoyable experience where the enjoyment is bounded by the content that Netflix can afford to license."

A user can hit those constraints when they search for something that exists but is not available on Netflix.

That point becomes noteworthy when that same content (or portions of it) are available elsewhere on the net. In my experience this is typically through:

a) downloading a torrent of the content that is missing from Netflix

b) watching all or some portion of that content on Youtube