> Users upgrading cheaper, over-provisioned, possibly loss-leading hardware to get more expensive functionality means no one would buy the more expensive model,

> Users upgrading cheaper, over-provisioned, possibly loss-leading hardware to get more expensive functionality means no one would buy the more expensive model, which would drive up the cost of the cheaper one. No, not really. If you think tinkering people who would open up their IKEA Symfonisk has a nontrivial overlap with Sonos customers, you're in for a surprise. Richer "nice off-the-shelf device" people will stay that way, DIY with an IKEA speaker people will also stay that way. What it does is it really encourages tinkering, thinking and innovation in the small fraction of people who would do that. It breeds better engineers, more engaged teenagers, a more flexible society. So really - all the positives and almost none of the negatives.