In a world of physical media, there was at least some plausibility to the notion of export restrictions and region coding.
I'm not sure how it ever made sense. Back in the '00s, I bought a $30 region-hackable DVD player from Sam's Club just to watch "They Live". The reason being, I could either buy the out of print Region 1 version from a third-party seller on Amazon for $150, or the in-print Region 2 version from amazon.co.uk for $5. I probably could have downloaded it from somewhere, but I was willing to throw a few dollars at it to have a legitimate copy (and I liked the idea of a region free player in any case). But hey, the studio made money, Sam's made money, and some Chinese DVD maker made money. Now, with region-locked streaming, they've managed to make it completely impossible to legitimately stream certain movies, so nobody makes money. I guess that's progress?