I'm assuming they're doing this to push the streaming. They're probably realizing how much less overhead there is for streaming so they're encouraging it..... regardless, I think this is ultra crappy.
That being said, I only have Canadian netflix which sucks compared to US Netflix. There's not a lot of great movies on it. Instead of going "Lets watch movie X on netflix" you have to use it as "Lets watch a movie, whats on netflix?"