It's a little surprising to me that there generally aren't more subscription tiers where you can pay more for higher quality. Seems like free money, from people like you (maybe) and me.
You can already pay for 4K or "enhanced bitrate" but it's still relatively low bitrate and what's worse, this service quality is not guaranteed. I've had Apple TV+ downgrade to 1080p and lower on a wired gigabit connection so many times.
And on top of that a lot of streaming services don't go above 1080p on desktop, and even getting them to that point is a mess of DRM. I sometimes wonder if this is the YouTube powerhouse casting a bad shadow. As LTT says, don't try to compete with YouTube. They serve so much video bandwidth it's impossible to attempt. So all these kinda startup streaming services can't do 4k. Too much bandwidth.
I'm not surprised they don't offer an even higher tier. When you're pricing things, you often need to use proxies - like 1080p and 4K. It'd be hard to offer 3 pricing tiers: 1080p, 4K, 4K but actually good 4K that we don't compress to hell. That third tier makes it seem like you're being a bit fraudulent with the second tier. You're essentially admitting that you've created a fake-4K tier to take people's money without delivering them the product they think they're buying. At some point, a class-action lawsuit would use that as a sort of admission that you knew you weren't giving customers what they were paying for and that it was being done intentionally, both of which matter a lot.
Right now, Netflix can say stuff like "we think the 4K video we're serving is just as good." If they offer a real-4K tier, it's hard to make that argument.
