This is a really old thread, but I have to respond to the beating up of the consumer:
First, a lot of people either don't have the cash or find it too much of a stress on the home budget, and this is precisely why TiVo never got into as many homes as it could have. TiVo forever remained a niche luxury item for the wealthy and affluent.
Meanwhile, Dish with its new strategy of "giving away" DVR's with the cost usually being either a modest upgrade, then later no upgrade at all for new customers, allowed Dish to have MORE DVR's in more homes than ANY other company by far, and that is the reason TiVo sued Dish FIRST: because Dish having the most DVR's out there in people's homes meant a bigger PAY DAY for TiVo and an example set for others TiVo had sued should TiVo win its lawsuit or if Dish chose to play ball with TiVo and offer TiVo's to Dish customers instead of Dish DVR's or just paid TiVo a licensing fee FOREVER (the life of the patent, really) on all those DVR's in all those homes that were deemed "offending" by TiVo in the lawsuit.
And TiVo lovers loved to bang on the consumer for choosing a "cheap cable DVR" instead of the far superior TiVo product, and the vast majority of cable subscribers with DVR's, over time, did have those "Cable co DVR's" because they did not require a full retail purchase price of a TiVo for which you were responsible for paying to repair if it came to that. Oh, and because TiVo wanted its money for its product, all TiVo's were assessed an additional charge making TiVo even MORE too expensive compared to the Cable DVR that had no such "TiVo tax" added.
It made more sense to the monthly budget to get a no up-front cost DVR with only a monthly fee and both Cable and Dish would replace your non-functioning or unreliable DVR at no cost (although Dish would charge shipping if no DHPP).
The point is, people live on a month to month basis, and they know that it is cheaper in the long-run if they pay full price, but they can't afford that or it would be a foolish expenditure at one time full price when they may need that money for a car repair or whatever. So, the only way we can afford such a device is to do the low cost per month--forever, but it keeps the hundreds of dollars free to pay for the car repair or unexpected plumbing bill. That's what life is like for those who are not as affluent as some on this forum, and it is, for those with less financial resources the only way they can enjoy a DVR or a car or a house or a refrigerator or whatever expensive item.
Even businesses and some of the biggest companies do the same thing, especially when what matters more in placing value on a business is how much CASH they have on hand, it makes more sense to lease or rent or pay the low price every month or quarter and stash the cash for its books. Sorry, 'nuf said