Yes, you understand Netflix & Chill correctly. The Netflix part is just a pretense. Because most Terrans are super uptight about sex so they can't just be like "hey, wanna hang out and bang?". It's far more respectable to say "hey, come over and we'll watch a movie".
Also, that movie, while an absolute classic that oozes sex appeal, is almost forty years old. It's not a great representation of life here on Earth in 2024.
If you're looking to learn about what life is like here, you really need to watch reality TV. But if you're just looking for cultural touchpoints, I can recommend a ton of great movies and TV shows.