Netflix may fray the cord, but I can’t see it getting snipped for that reason alone. Traditional cable companies carry a lot of live stuff that Netflix never will have (unless it, too, becomes another traditional cable company).
Now, I hardly watch TV at all, even free off the air, and have no cable service. I get my internet from my phone company. But enough people apparently like their bread and circuses well enough, and the circus part will never be duplicated in full by Netflix in its present conception.
I suggest that Netflix already is “another traditional cable company” that allows on-demand viewing and simply uses broadband fiber as the carrier instead of 75 ohm coax.