So what I got from this article is that
1. It's just an app, with artificial limitations to restrict its functionality to the hardware
2. Other companies do this, which somehow means that it's not just an app? Like seriously, what kind of argument is that? No one's saying that this company is the first to ever make an unnecessary device. Literally any device with Internet connectivity is a "hardware-based gateway to the company's software services".
The sentence "You can sideload some of these features to another phone" infers that the R1 is basically a phone, which makes its software basically an app.
"it's not just the app doing the work"... Right, the other part is on the servers. That's how a lot of apps work.
I feel like, in an attempt to split hairs, you missed the point of the discussion that's happening.