This is not "other first world problem", it's an unprecedented situation in which a good chunk of the world's population needs to be kept at home for extended periods of time. Preserving morale is important for preserving social distancing, which is important for dealing with the pandemic.

Not to mention, everyone who isn't on Netflix now is probably videoconferencing. Which also elevates this problem to "important for preserving the economy" level.

You can do plenty of morale-preserving things on a slightly janky connection. And being worried about some visual stutter on your teleconference is solidly in the unimportant problem pile.

Teleconferencing very quickly becomes unusable on a really congested line.

Specially in Germany where the quality of the internet connections is really bad.

There are a lot of vital services using the internet. If internet grinds to a halt because everybody has to stay home watching Netflix, and vital services have their internet access reduced, then scaling down Netflix bandwidth makes sense.