In practice, in addition to the usual bugs you would expect from a software-based system managed and maintained by a plethora of organizations and contractors, they tend to become very annoying as parts wear out, so you have to fiddle with the key reinserting it repeatedly trying to find just the right angle so it will make a good contact to be recognized by the lock (for example the iLOQ system by my landlord communicates over a thin contact strip molded into the key opposite of the cutting and separated from the rest of the key with a thin layer of plastic).
(for those missing out: https://en.wikipedia.org/wiki/AACS_encryption_key_controvers...)
But that was in a pre-DMCA world, before the anti-circumvention provisions gave these companies more legal weapons to criminalize fair use and competition.
How so? And what region are you referring to? There are many countries in the world with vastly different laws.
So, you are right, the laws in Micronesia, Palau and South Sudan might be vastly different.
Don't you live in a good neighborhood?
But where will you park your car when you go to work? You have to lock it.
I don't think that's a trusted environment or "good neighborhood". But then I basically use "can leave front door unlocked with zero worries" as the threshold for "trusted environment".
But those environments and neighborhoods definitively exists today across the world, although they're probably becoming less and less common.