The issue is as much companies going out of business as consumers buying devices from shit companies.
We need schemes which enforce security and which make long term economic sense. I would require software escrow for all companies to ensure a bankruptcy doesn't mean all software is lost.
A solid 90% of the problem is that hardware companies think that somebody actually wants their software. Hardware vendors are bad at software. They should not attempt to make software. They should make hardware with the expectation that customers will install whatever software they want on it, and then throw some open source code straight from github on it for the customers who expect it to do something right out of the box.
Their code is bad. It should not be used. They should not even write it to begin with. Just ship the device with existing open source code with the minimum -- and published -- modifications to make it run on your device, and focus on being a hardware company.
We need schemes which enforce security and which make long term economic sense. I would require software escrow for all companies to ensure a bankruptcy doesn't mean all software is lost.