> have to replace servers every 24-48 hours with lots of downtime
Which part causes lots of downtime?
It's extremely unlikely Netflix will publish how they perform the detection, because that would make it easier for people to get around. My guess is that they know where your account should be located based on payment information or previous detection of region-switching services, and they use these flagged accounts to uncover new region switchers.
Even the TTL on a.dns.whatever is set to 1min, a lot of clients ignore the TTL and use the cached value for minutes to days after TTL expiration.
However, the monthly cost was so low that I got paranoid about their business model. They could do all kinds of MITM things with people who used their DNS rewrite+proxy service, in addition to enabling Netflix...