This isn't quite true. They are nearly always using subscriptions and ads to increase their profit margin. Enabling them to go from a low-margin hardware business into a high margin software service business. Even high-end brands like Wolf/ Sub-zero are low margin compared to a software services company. That is why every company is shifting their portfolio to this subscription/ ad model and not leaving any "unconnected" device models available in their line ups.

I think this is bad for customers. If every vendor does this, and regulators don't set regulations that balance the interests of companies with the interests of customers, than the only option people have are things like this.