Guess this also explains why they cancel good shows after a few seasons but not sure how well the hypothesis extends to reality.

Netflix rarely does good shows that are created exclusively by them. My go to example is the Witcher series. What they are amazing at though is picking up projects from small scale studios and helping them produce it. Nimona, Klaus and Arcane are some of the stuff I remember on top of my head. Wish they stick on to that, helping small scale studios reach a wider audience