> e) most users of such sites aren't demanding for quality nor service, therefore you can compress a lot more and if you overloaded they would come to other sites (which could be operated by the same people just serving from the other place)

Actually, the opposite is true.

If you live a country where piracy is persecuted and these services aren't available and you want to watch Silo, you don't have a choice — you have to pay for Apple TV. If you want to watch Stranger Things, you have to pay for Netflix.

But if those services are available to you, then you would have those shows on any of dozens of pirate services, and you can switch between them anytime. At which point they actually start to compete on other qualities, like streaming.

In fact, many of them have much better quality, at least in the areas where their audience lives.