OVA

Well, maybe they shouldn't have streamed liquid diarrhea.

Maybe, but it's going to be full CGIshit. Remember Gantz: O (amazing), BLAME! (ok) and Lupin (good)? Don't be surprised with more stuff like this, but on Prime and HBO max.

I just want anime where people and things actually move.

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Thing is they were never actually profitable. Their business model was predicated on half of the world buying a subscriotion one day. Then Disney and everyone else started making their own services and taking stuff off Netflix while flooding the market.

A better question is why wasn't there an ONA boom in the same way as the OVA boom of the 80s? Is it because the internet made that idea redundant? Is it because the only worthwhile outlet for releasing ONAs is Netflix?

cause you had to buy ovas where as ona are either free or on subscription service

OVAs were stuck on home video, in Japan, mainly in the 80s, where the average DVD cost like ¥9000 and people had money to burn. Since the profit margins were higher than getting it aired on TV they remained viable until streaming matured. Streaming is practically the same as negotiating broadcast on TV. The margins aren't there especially to justify higher frame count and irregular release schedule.

Streaming is not in a contraction whatsoever. It's still aggressively growing. Netflix lost billions in value because their competitors are trying to eat more of the streaming pie and the current macroeconomic situation is looking bad for everyone i.e. potential recession, inflation, and so on. Netflix has effectively lost its first-mover advantage.

I don't know about Japan but there aren't any Blockbusters or other video stores in my neighbourhood anymore. If people wanna skip the theatre or network tv they just release on Netflix or online or whatever now.

Because the market turned towards subscription based services, not paying for individual pieces of content. This incentivizes appeal to mass audience and generic inoffensive crap instead of niche stuff like OVAs, where a relatively small group of dedicated fans can support the production

Streaming, as an economic model, is closer to TV than to OVAs. The TV model is that someone buys a subscription and then they can watch whatever you have, but don't own it. The OVA model was a higher price for a one-time purchase that got you the physical item.

This is why streaming hasn't filled OVAs' niche, and probably won't do so. If anything is filling OVAs' niche, it's the "series of short theatrical movies released once every 6-12 months" trend (which some Jap sources even refer to as OVAs) and/or the crowdfunding trend. Except the former kind of got stalled for a bit because of covid, but it might be resuming now.

Another element of the OVA trend was "the ability to get past TV and theatre censorship teams"
If a show is to be broadcast on TV or shown in a theatre, it has to go through a certification or ratings board which will determine what can and can't be shown.
Dumping out a product direct to video allowed you to circumvent those censorship groups. Well, back then.
Steaming services are functionally no different from broadcasting services in that they control the content they air.

once Japan has another massive post-war economic boom
so probably soon