"Youbico isn't saying that the security of the device is increased by keeping the source code secret."
Yeah, they're not really saying anything other than trying to provide an excuse for why they won't release it. "You can't use it anyway" isn't much of a response (I actually find it rather patronizing and dismissive).
Not to pile on, but regarding: "Engineering is always full of trade-offs."... what exactly is the supposed trade off here? (Maybe they're using licensed code that they can't redistrib?)