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Originally Posted by shiggie
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If Apple were to release such a device, it would probably employ a stricter DRM than that of a Sony device; furthermore, it would probably have functionality limited in such as way as to bind the user to some subscription-based service.
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Historically, Apple's DRM has been much less restrictive (and functional) than that imposed by Microsoft through Windows Media Player or by Sony through its late, unlamented ATRAC scheme. This fits with Apple's overall design philosophy, since draconian DRM is very contrary to a positive user experience.
The iPhone's hardware lockdown is an inconvenient limitation for a subset of users, but the vast majority don't care about installing third-party apps. The AT&T lockdown is more problematic, but if gaining free rein on the iPhone's hardware and software required a carrier lock-in as part of the deal, then I think it was a worthwhile trade from a user experience standpoint. Imagine what the iPhone would be like if AT&T and the other carriers had their customary control over its capabilities and feature set, as they do with other devices.
Besides, as others have said, this would be a non-issue for a non-phone device anyway -- Macs and iPods certainly have no requirements for any subscription-based tie-in.