Actually Netflix has said that they have noticed that people who watch TV episodes on the service tend to consume them a season at a time. That is part of what prompted them to release House of Cards all at once. They have also said they intend to do the same with the new season of Arrested Development.
Doling out an episode at a time makes sense for TV. You've got airtime to fill and ads to sell against that airtime. But it also creates a system where writers need to make every episode a crisis so they can leave cliffhangers and hook viewers into next weeks episode. And if a show gets cancelled viewers are just left twisting in the wind which only creates bad feelings towards the networks. It's a tiring and crappy system with little creativity in it. With the season at a time system writers know they've got a guaranteed number of episodes to set things up and pay them off which I have no doubt will make for better storytelling. For networks trying to squeeze every last ounce of blood from any given stone it may not be financially viable to pay for an entire season upfront even if they do push them out one at a time but fortunately Netflix is in a different type of business. And as a bonus nothing put out on Netflix needs to meet a specific length requirement or have setups for commercial breaks. The story is paramount, as it should be.