Originally Posted by david_e
I think there is a flaw in your logic. If there were a hack, people still have to by a Kobo device. This type of 'customer' is no different than someone who buys books anywhere but from Kobo, or only reads library or public domain books, with the added benefit of not being a drain on support services.
Not necessarily, wrt a need to buy a Kobo. A hypothetical and functional open source solution could happily run on Kindle, for example. Or BeBook, or practically any eInk reader, since most of them are running Linux, and what Sony did to protect his hardware platform is rarely done these days.
In addition, I doubt that Kobo would be happy to simply let a customer go after the hardware sale. Social networking integration, video-game-like "rewards", potential position sync between phone and/or tablet app between different devices, all those offered extras are a hard effort to lure and keep the customer in Kobo ecosystem and gain ANY content sale that they can.
If I was Kobo, and invested into the development of the reader app (check the list of the people involved on your device, it is impressive), I would definitely prefer my customers (and potential content customers) to use it.