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This seems to be firmware only. Is there hardware for routers that is open or at least ethical?

At first I thought it would be for open hardware; we already have the open software... Sort of disappointed.

I don't know enough to say for sure, but would this qualify as open hardware? http://shop.8devices.com/carambola2-bundle

Nope , they are closed source ( no schematics / design files are available for it ). Only module pin outs are available.