Wow, this is really a sad day. I used to like recommending the "Model One" to people with very tight budget. Even though it has no secure element, I found it good enough for most users and it fulfilled my "open source hardware & software" requirements.

I'll stick to recommending people to save up for a Foundation Passport for now then, and potentially look more into DIY solutions as well. How about trying to build a Passport ourselves using the published OSHW files? I reckon that would be a fun project.
In my experience, building a new device from scratch (like the current DIY wallets) has a higher potential to fail / stall since without funding there eventually comes a time when nobody will continue working on the codebase and update the device to new standards and such.