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There are plenty of devices without wireless connectivity. Sony and Pocketbook are the bigger names, plus the old Kobo if it's still available. None of them have be registered to a bookstore. I imagine there is something that could be done in the software to disable the connectivity in any device.
Sideloading is usually done by connecting the device to a computer by cable, and copying the files across as you would normally. Distributing updates would therefore require users to connect their devices and download the updates manually. I suspect that your client wants the ability to automatically send updates? Actually, they could possibly use the sync feature present on most systems, and modify it to ensure that it only syncs one way (ie from the server to the device). This might also stop personal use, as it possibly could be set up to delete the unrecognised files from the device. This would still require the physical connection to the computer - but since they mostly have to recharged via the computer anyway it shouldn't be a problem.
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