Sounds interesting. This sounds like a bit of 'how'. The 'why' is alluded to in the title but not so much in the body.
I can understand DRM-free to allow more freedom to user. What I'm missing is more of what advantages the user reaps from using this device. Does the user purchase, rent, or borrow the stick? Who can load content onto it?
What problem(s) does it solve?
What do you mean by "Merch Alternative"?