> Trusting a random vendor, even on your home network, seems crazy.
Random vendors who promise unlimited free streaming, no less. Even if they're pirating the content, video streaming infrastructure still costs good money to run, so they're obviously making up for it by monetizing the boxes in some other way.
Most consumers would assume that the $400 they paid for the box is how they monetized it. Naive perhaps, but not necessarily unreasonable.