Bitcoin can fuck off.

The point here is that car companies already charge for these things. The reality is basically two scenarios when ordering a car:

A: You pay $x, and they offer you heating steering wheels for $y. If you do not get them then, you do not get them ever.
B: You pay $x, and you can pay $y at any time to get heated steering wheels.

The business “bet” that (B) represents is that maintaining additional SKUs for each upgrade-feature and splitting off production lines to include or not include various combinations of features 1-2-3-etc. will cost them more money than just including it in every car. Then they can sell it to you on a whim. The actual feature itself does not cost anywhere near $y in either scenario to include, which is an important component of making this possible.

Now, you can say that (B) is a shitty scenario in a vacuum: if they’re willing to include it in every car, they should just charge every car what it costs to include plus some minor markup to allow the business to operate. E.g. if it costs $50 to include, they can increase the price of every car $55. And in that vacuum I’d agree. But it isn’t in a vacuum. That is not the scenario (B) is competing with. (B) is competing with (A). In (A) you are going to pay $200 or $300 or whatever for that $50-cost feature up front, or you never get it ever. In (B) you pay that $200 or $300 whenever you like.

It operates in a similar world to how Apple charges $200 to go from 8gb of RAM to 16gb of RAM, when that might cost them $10-20 at volume pricing. Or to use a well-liked company, how Valve charges $250 for a ~$10 SSD + ~$5-10 carrying case + ~$5-10 glass coating, on the base Steam Deck vs the fanciest Steam Deck.

This is not a “as a service” model. It’s a simple upselling business model. Profits on base models are low so as to have a low sticker price, and then they try to create profit off of upgrades. In this case, the software locked version is preferable to the consumer over the default version because it’s something you can unlock at any time, instead of only at purchase. It is not a new business model, nor is it even limited to electronics. The overall business model is shitty, but that applies to every instance of it: (A) and (B), and (B) is not differently shitty.

Service based systems are based on recurring revenue, in this case anything with a subscription. Which I specifically called out as something that would make it shitty and pointed to their subscription based or subscription-incentivizing behavior as shitty.