Unforutnately the business model isn't broken at all - if you see it as
exactly that: a BUSINESS model. The box stops working, it gets tossed.
The user buys a new one that works.
Perhaps I'm overly optimistic, but I suspect that the next one the customer buys isn't going to be from the same manufacturer. And, there will probably be conversations along the lines of:
"I need to get a new wifi router."
"Don't buy an X one.. mine stopped working after a year."
If the customer is slightly more savvy than usual, that might continue with:
"I googled ways to fix it and found someone who said they didn't support some important thing. I found this other company that makes one that will support it."