With the Internet at its present state, the ways of blocking users based on their connecting IP address is fraught with errors. Netflix will receive a big backlash from their customer-base if they decide to block them arbitrarily, and that cannot be good for the company and their expansion in other countries.
Plenty of people use Netflix and I believe limiting the way that people use Netflix is unfair. There are some people who many use proxies for their regular browsing experience and if Netflix prevented people from using a proxy to stream, then they would be losing a customer or two.
I don't think Netflix should stop people from using proxy streaming. Netflix should allow all of their content to be available to anyone anywhere. I don't understand why they need to only allow certain content to be available in certain places. If you pay for the service you should be able to get it all.
It makes sense for international government agencies to want to ban proxy streaming of Netflix, but that responsibility should not fall on Netflix itself. Proxy streaming is great for those outside of the US because then they can maintain their subscription and use the proxy server to appear to be within the United States.