Can anyone think of negative consequences for end-users? I imagine this is not really a practical attack vector on your YubiKey's 2FA keys or TPM disk encryption keys.
All the applications I can think of are unwanted just for DRM and other compute-freedom restrictions, which I see as a win. (See sibling comment from no_time).
Maybe one edge case would be things like SGX? IIUC being able to extract the secret keys would allow one to write an emulator that can run arbitrary code and pass remote attestation, while still being able to inspect (and modify) the code and data. This is something which feels at least somewhat useful and not fundamentally user-hostile. But my understanding is that the security model there might be broken regardless.