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As I understand that's not what's being proposed. The "keys" in this case would decrypt the encrypted source code that's available in a public repository, and there's some logical mechanism(and actual use for smart contracts) that would key the key in escrow until certain conditions are met(company doesn't renew, goes out of business, etc.) After which it will be publicly released so anyone can decrypt the already available encrypted source code

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And what happens if the server holding the keys gets compromised? I guess most manufacturers won’t care, but the more reputable ones would have things in their source they consider proprietary and would definitely not want to have to submit it.

Verification that it is, in fact, the actual shipped source might not be trivial either.

What happens when someone hacks GitHub and gains access to private repositories? That slim possibility doesn't stop the vast majority of companies from hosting their source in a private repo.

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