I found that people around me pick movies a lot less of what they want to watch and more of just what is available right now on Netflix. Maybe having an unlimited library also means you have to be lot more picky of what you watch and developing your taste a lot more.

Well that's also the point of building your own library. You get to choose to store only the things you like, and not store/delete things you don't like. Nothing gets pushed to you, you are in charge.