Absolute rubbish. Netflix created a problem of their own volition. The correct solution is to change the subscription model to "a fixed number of devices that can be used anywhere". Then we can choose who to allocate those devices too, and Netflix still get their subscription fee. And terms and conditions are met. You need a dose of history.
Part of Netflix's popularity and the reason they got my business in the first place was because I could share the subscription with my family, most of whom were, and are, in no position to afford a subscription of their own. I really thought that finally a company got it - a family sticks together no matter what their makeup nor where they are. Who defines the family is of no concern to the company. But no: The recent crackdown simply indicates Netflix has no understanding of what a modern family consists of, nor the reality they may not indeed be "under one roof" (ahem residing at one IP address). It is all about "reclaiming revenue" by reducing the terms and conditions that were responsible for their very success! Yet another standard big company policy mantra of more profit by reducing product size and maintaining price. Fine, but not after you have created the value expectation of being a family friendly company.
Meanwhile the real cheaters (i.e. those on-selling content or just generally aka broadcasting) will just set up VPN networks and Netflix can be none the wiser.
My advice to Netflix: Pull your head in and go with something like my suggestion above, or they will have lost a premium customer.