> Why store it all locally?
On the one hand you've mentioned Netflix which is cool in some ways but has it's own limitations. On the other hand, you've have mentioned things other than Netflix that are all clearly inferior and aren't even worth mentioning in the same counter argument.
The first one completely negates the others.
On the other hand Netflix has limitations on responsiveness and selection as well as quality. At best, the Netflix version of something will be somewhat inferior. That's assuming it's even available. Then there's the whole network problem (which also impacts quality).