Sure, they could. But given that the average consumer really doesn’t care that much about picture quality (DVD _still_ outsells Blu-ray for example), why would they bother? Increased storage and bandwidth costs, for what exactly? To cater to the small group of consumers that have good enough hardware (and eyes) to distinguish/care about 20Mb versus 100Mb? Those people are probably buying physical media anyway.
We're misunderstanding each other. I take what you say to mean that Netflix could offer me unlimited bandwidth for 5 euros a month or whatever they're charging.