On the face of it, Digital Rights Management is very weird for manufacturers of locked-down devices. A modifiable device would have greater demand because of additional consumers who wish to buy it then modify. Furthermore, the engineering effort in manufacturing DRM adds to the cost of the device without providing any additional functionality (in fact, it subtracts functionality!).
We are missing out on the tremendous amount of innovation that could have happened if people can modify. I think it is mind-boggling to imagine what could have been: there are some amazingly creative people out there. Innovation never takes place in a vacuum; everyone builds on someone else's work.
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