I don't know man, I agree with everything you say but I wouldn't say the security element killed the system - the PS1 and DS had rampant piracy but still sold like hot cakes. I know people (anecdotal evidence alert) who bought a first gen Switch because it was so easy to flash and exercise the ability to boot "homebrew software".

I'm pretty sure the CD trick only worked on the first (or first iterations) of DC hardware too - I forget whether they either patched out the ability to read CD's aside from karaoke discs, or whether it was a change in CD drive or laser in manufacturing - but I didn't see much piracy where I was.

In a case of "opposite side of the same coin" though, I remember a small surge of people buying a CD just for Bleem!, and the ability to play patched editions of PS1 games on a DC. I understand Metal Gear Solid played well on it.

Fun times.