My S/O did a free 2week trial of Hulu (to see Golden Girls) - and I took a look through there - and its absolutely pathetic. I know the movie section was terrible outside of Criterion, but jeeze. They've even removed the few reasons I ever cared about Hulu in the first place (Elvira). Then there are still commercials! I thought that was the whole point of them splitting "Yahoo View" (free service) from Hulu (now paid only). What a shitty company. Criterion couldn't have left that sinking ship at a better time.
Filmstruck itself might be partly to blame - as its hosting a lot of studio classics, but even before Filmstruck, the writing was on the wall that streaming services only included classic or films older than 10 years if they were contractually forced to.
Hulu is owned by ABC, NBC and Fox (Time Warner also recently acquired a 10% stake), so their primary content is current TV shows. Though they're often stacked up against Netflix, it's a bit apple-oranges, because they have a different model. As you intimated, other than the Criterion channel, their movie selection has always sucked. I'd say their TV programming has marginally improved because there are more complete series and seasons available. But if network TV and some basic cable series aren't your bag, than Hulu is inherently going to fall short.
The point of Yahoo View, as you mentioned, was to split the free online service from the paid service. When I first tried Hulu, I was taken aback by a paid service having commercials, but when I learned they were owned by three of the networks it made more sense. Hulu ups TV episodes the day after they first air; if they didn't have commercials then the networks would be undercutting themselves.
Filmstruck hasn't been around long enough to affect other streaming services (except Hulu natch). Think Netflix has less classic movies because they've lost many big libraries in the last five years; licensing films overall has gotten more expensive, so they're specializing on TV series more. They'd happily offer more big-name seventies and eighties classics if they were inexpensive to acquire.