Putting Netflix to one side because the majority of the content is back-catalogue, NZ actually needs a decent service that is providing more up-to-date content like Hulu Plus or Amazon Prime at an affordable price. The current contenders either are too expensive, don't support enough devices, poor content, 14 days to watch or restricted to only 5 devices. If NZ distributors can't up their game then they will lose completely to overseas providers. They will end up in a position of "reseller" rather than provider in the same way that Vodafone operate for their cable TV service.
That's the real problem. Give us an equivalent service to overseas (i.e. the US) and 90% of this issue would go away. Same selection at the same price, maybe slightly more, although given it's online is their much to add? Not sure on that - it must be way cheaper than physically shipping items down here.
The worst thing? It's completely technically possible. The illegal and VPN/global mode options prove it is - their restrictions are a sham. We are being intentionally hobbled because of money. And these companies won't give us a comparable service, even though they can. Is it any wonder people despise them, and go elsewhere?