Umm, yeah, ripping DVDs doesn't break DVD drives. If your DVD drive wore out from ripping a DVD, you just had a crappy drive that was going to die anyway probably.
Trying to record live Netflix streaming would be stupid. It's going to be lower quality than a DVD or blu-ray rip (for HD stuff) because the streams are lower quality (not to mention if you're not recording to a raw uncompressed video file, you're losing quality there too) and it would require recording in real-time. Ripping a DVD or blu-ray can be done much faster than real-time because you're just extracting the video files.
Seriously, it's inefficient and lower quality, that's why no one does it. There are much quicker ways that result in much higher quality results.