Agreed. Netflix is a great tool for discovering new movies and t.v., but if you love a movie enough to watch it multiple times, you really need to own it.
In ddition to availability issues, I’m concerned about censorship issues re: non-physical media. Several years ago, Amazon actually removed 1984 and Animal Farm from the Kindles of people who had bought the novels: http://www.nytimes.com/2009/07/18/technology/companies/18amazon.html . As it turns out, the companies that released the Kindle versions had no rights to them, but the fact remains that Amazon can literally remove a book you purchased from your library. And if Amazon can remove books, they, and other companies, can remove movies and music, too. That’s to say nothing of Nrtflix, Hulu, et al. removing any television show or movie from their streaming services at any time, for any reason. Perhaps even at the request of authors, publishers, or governments. While it would be difficult to erase every electronic copy of 1984 from the world, it is a lot easier — through spyware, monitoring of downloads, etc., to persecute people who own or download an e-copy of 1984 than it is to track down all the owners of physical copies of 1984.