Hackability is less of an issue in that the firmware and OS would have to be encrypted in all cases

The way to do this properly is to have a bootloader which only reveals the device key to signed kernels. Release both a signed proprietary kernel and an unsigned Linux kernel and Bob's your uncle: a simple consumer choice between DRM and hackability, with changing one's mind in either direction just a firmware upgrade away. The only problem is that this requires specific hardware support to conceal the device key, otherwise a modified kernel, or root in userland, could just read it from wherever the bootloader got it from. We talked about such hardware support for certain future products, but I doubt it ever got into the actual spec for them.

Peter