Gideon, you make some clever arguments and I enjoy reading your legal gymnastics, but you are jeopardizing your credibility on this one. Do you really want to take the position that there is no correlation between the fall of Blockbuster video and the rise of Netflix? It's pretty much undisputed at this point.
Also, you are now walking back your claim and just saying that what Netflix is doing is only "better" than suing file sharers. But you have already claimed that suing uploaders has achieved nothing. So by your own logic that means Neflix is essentially "better than nothing" in regards to stopping piracy. So by your own frame of reference, you've minimized your own claim regarding the impact of Netflix on piracy.
The bottom line is that Netflix has nothing to do with the debate on piracy. Netflix is a success story and should be studied, but it's a traditional success story about how one company defeated another by offering the same customer a better alternative.
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