Any kind of device-unique key is likely rooted in OTP (via a seed or PUF activation).
The root of all certificate chains is likely hashed in fuses to prevent swapping out cert chains with a flash programmer.
It's commonly used to anti rollback as well - the biggest news here is that they didn't have this already.
If there's some horrible security bug found in an old version of their software, they have no way to stop an attacker from loading up the broken firmware to exploit your device? That is not aligned with modern best practices for security.