Plus, it seems backwards from a business standpoint. You always have the cost of installing the hardware, but now you only get a % of users who agree to pay for the additional cost? The only way to "fix" that is to artificially raise the price of the product so effectively everyone is paying, which means now you're double-dipping from the people who do want it.
It's just crap. If I buy a physical device (not renting) then I own it and should be able to use its full capabilities. The only thing that should cost more is anything that has ongoing cost to the manufacturer if I use it.