When a service is selecting which streams your client is granted a license to, if you claim L1 protection, the license request includes a signature from the GPU/chip doing the decryption, so the service will know whether your device only supports L3 software protection, or has a full chain of trust for the content and thus can protects against things like the user screen recording video content. Chances are the contracts rightsholders have with Netflix et al. require L1 for HD or UHD streams, and only allow L3 420p streaming (note that Netflix Originals seem to stream at 720p on L3, at least from what I've heard).
> they just don't publish the methods and devices they are using for that so they don't get patched.
Well not exactly, it's hard to patch this when the keys leak from a very popular device.
Recording e.g., a 4K HDR movie off Disney+ is absolutely trivial this way.
Which is pretty dramatic, assuming you don't want absurdly large files.
Where do you see webrips in 2022? Looking on BTN, I only see webrips for series that literally nobody cares about. Everything else is decrypted streams (WEB-DL).
It's only going to get worse. I don't think it's gonna take too long for corporations and governments to mandate locked down computers for everyone. Soon all software will require attestation against "tampering". Copyright industry wants this because "piracy". Banks wants this because "fraud". Messaging services want this because "terms of service". Maybe one day even ISPs will refuse to allow user controlled computers on their networks. Who knows what they could do, right? They might be a terrorist or pedophile running Tor and encrypting everything.
That said, it seems odd that silliness like this still exists.