How is Netflix wrong here? They're an American company operating in the US, they have licenses to allow people to request streams from Canada, but the Canadians have no jurisdiction over what an American firm operating out of America does.
This is a regulatory overreach the way that that asinine media tax to pay for piracy is. If the customers lose out, it's because their regulators are incompetent.
Netflix doesn't allow Canadians to access Netflix USA -- they instead have a service called Netflix Canada that is only available to Canadians. Where this crosses the border is that they bank through a Canadian bank to process orders, therefore they are operating out of Canada.
Regulatory overreach would be the CRTC going after Netflix USA for something they're doing in the US; this is trade happening in Canada, so that's why they're involved.
That said, the CRTC likely doesn't have the right to step in here in the first place, even though they can, and have not been slapped down by the government in the past for doing similar things. That's because they're supposed to regulate broadcasting; the rest of their remit is on very shaky ground/legislation.