OK, rephrase it slightly and say that it must not require an online account from a specific provider. If I can come up with an API endpoint that I want to use instead of Amazon, and I want to reconfigure my Dash button to use it, I should be legally and technically allowed to do so.
The regulation doesn't need to ban any categories of products, or mandate any features. It just needs to say that if your product depends on online connectivity for a significant part of its functionality, then it must not employ technical measures to prevent interoperability. Hardware that's sold to consumers already needs to meet various compliance standards, such as RF emissions testing; this doesn't seem like a heavy burden in comparison.
Of course, such a policy is very unlikely to be enacted in the US any time soon, but hey, I can dream.
Some people seem to believe Internet is the new electricity. Even if this is so, electricity doesn't have colour - only voltage, amperage and frequency. My toaster doesn't restrict me to use only electricity from a specific power plant. I can power it up even from a car battery, if I tinker with it a little. Similarly, a device like the Dash button should use whatever endpoint that implements the required API, and not be restricted to a specific provider.
Those weren't innovations, those were solutions in search of a problem. Probably contributed to their discontinuation. Also, what "innovation" of the past 20 years has been truly innovative, life-changing, and a net positive for humanity? Pretty much everything that has come out of Silicon Valley has been at best neutral for society (creating new markets and revenue for businesses aren't a positive in my eyes).
We need to stop pulling the "stifling innovation" card. Not stifling innovation has led us to society's cancerous relationship with technology.
Wouldn't impact its intended use case at all. Other than the fact that it could now be used for something useful I guess...
Yes, the current Oculus / Facebook situation sucks.
However, blanket statements like "Hardware requiring an online account to work must be outlawed." Would ban very legitimate products such as Amazon's physical buttons for restocking supplies.
Sure the Dash buttons are discontinued, but there's definitely an interesting area of products that might be developed in the coming years for other products in this wide domain.