The law cannot force Netflix to not buy the cheapest content offered in a country if the quality is irrelevant. All these countries have their own Hollywoods that takes all the money, and tons of small productions and artists living in poverty; there will always be someone to offer dirt cheap content needed to fill the quota. And Netflix can always make its own local production company, produce some crappy reality TV program and generate as much local content as they want.

It's a problem with TV or cinema, since there is limited space and time on it, but with streaming, Netflix can just put it in the catalog and let everyone not click on it...

Not every place would bother making tons of money off of them because they'd rather have the programming out there. I'm going to guess many weren't making money anyway, since they were only shown once or twice on broadcast television. And overall, some of it might be a bonus for the production of new stuff.