I can see both sides of it but this could end up being a disaster for netflix.
Binging series is what keeps it from being hbo, showtime, etc. The fact that you have tons and tons of content right there at once for you to binge.
If it goes to a weekly format, you're right there with all the other subs. Disney has mcu and star wars. hbo has the tradition and prestige. showtime the same thing to a lesser extent but they hook some with the longer seasons. And thats not even accounting for cable shows.
Netflix just gets thrown into the pile with everyone else when they pull this. The appeal of netflix is that you get a new show, binge it, and move on to the next.