The point with $450+$250 is that the $250 goes *direct* to SONICblue. When a unit is sold through retail, the retailer gets their cut on the $450 and not the $250 activation fee - just like Tivo.

This means that the unit can (a) be sold cheaper and (b) sold effectively through retail.

As for anti-hacking features, I think the slashdot thread also pointed out that TiVo have the same (almost word-for-word) anti-hacking clause in their contract too.

Hugo