Or, the incredibly simple solution which would have avoided literally all of this drama - create a new product called Ledger Nano R, which is the only product in their range which provides this Recovery nonsense. People who want third parties to store their seed phrase can buy the R, and everyone else with a shred of sense can stay away from it.
And miss out on millions of existing Ledger users who can all be convinced to pay $9.99 per month to compromise their keys? Doing the right thing doesn't earn you money.