It's inherent to the business model to block out competition on the "recoup" item. What business sells the appliance at a loss and meekly accepts being overrun by third-party suppliers? Dead businesses, that's who...
Downside: the model is "progressive", where more people can afford to use the appliance because it is subsidized by people with high usage. So if we axe that model, product X becomes inaccessible to many people.