They are in the business of streaming, and are making art to maintain a fresh library to stream. Just like broadcasters and movie theaters before them.

TV shows and movies on physical media was a huge change for those that required a shift in priorities that took decades and for phyiscal media to be profitable. Netflix is still making bank doing what they know how to do, which is streaming. Switching to physical media would need to be more reliably profitable for them than limiting it to streaming to encourage subs to make the switch.

I would prefer the physical media option too, but their reluctance is understandable.