It‘s also hard to respect a format whose main value-add is quantity over quality, but that‘s Netflix‘s strategy. And will continue to be Netflix‘s strategy if they get WB.
If the award is already being given based on perceived quality, that would be handled by the existing rules. Low quality movies don't tend to win Oscars in the first place so that's hardly an argument for changing the rules to preclude Netflix releases.
If theatres pivoted to competing first on format rather than exclusive access to recent releases, and managed to do well in that regime, I'm sure Netflix and other new media would be more than happy to indulge. Seems unlikely, though, doesn't it? The demand exists but I would be surprised if it was a quarter the size.