As I understand it individuals were stack ranked within teams, so even if a team outperformed the company or industry average, individuals were still tagged as underperformers.
And generally it became a matter of politics, popularity, and self-promotion, not objective competence - which is hard to measure anyway.
To me, it seems like a fast road to madness.
As for Netflix - I can't imagine any company needs to be staffed entirely by ninja rockstar code demi-gods. Many development projects are mundane and by the numbers, and basic competence is fine. If you want to be disruptive, hire a core of creative innovators who can code. They probably won't be ninjas, but for product development, talented customer-oriented innovators are a really good thing in any business that sells stuff to real customers.