AFAIK Linksys did not intentionally make the WRT54G hackable; they were forced into releasing the OS source when it was found that it was based on GPLed linux components.
Specifically, "The Linux-based open source Wireless-N Broadband Router with Storage Link (WRT160NL) was created specially for hobbyists and wireless aficionados."
I understand Apple's motivation for control although I'm not sure I like it. However, Linksys/Cisco is just selling commodity hardware for low margins. It's not razors & razorblades, and there's no ecosystem to manage. Why should they care if their hardware is used with 3rd party software? I wouldn't have bought my WRT54GL's if I couldn't run DD-WRT on them.
The WRT54G was hackable long before they realized there was a market and put out the L. The stock WRT54G, L or not, was quite flexible. The L just had more memory and more flash, so you could do crazy things like running spamassassin on your router :)
Yes, I realize that - and in fact I have DD-WRT running on my old WRT54G, but our market is not the mass market (I'm starting to sound like a broken record on that point). Sample 100 random WRT54G buyers, how many even knew that the router was hackable, and in the tiny minority that were even aware of such a possibility, how did it account into the purchase decision?
Not to knock on the router, but I seriously doubt its hackability had any major influence on its success.
But using a random version of Linux that they found on the Internet was probably cheaper than developing their own custom OS and DRM scheme. Cheap product development == more profit. And happier users, in this case.
The WRT54G shows that an inexpensive product that meets everyone's needs will sell better than an overpriced product that intentionally limits its own functionality.
