See: https://en.wikipedia.org/wiki/Kia_Challenge for what happens if you skip the immobilizer
It would be reasonable to have something like key and pin (similar to chip and pin[1]), where you have to enter a PIN and have the physical key to start the car. Or have a fingerprint reader. Or use the alertness camera for face authentication.
Since nearly everyone has a phone, and that phone is likely paired to the car, it should also be sufficient to sense that the bluetooth of the phone has paired to the car and at a sufficiently strong signal strength (and is not a new pairing).
The idea that the key itself must embed cryptographic hardware is a historical assumption that should be reconsidered.
[1] https://en.wikipedia.org/wiki/EMV#Chip_and_PIN_versus_chip_a...
Also your steps are about starting the car, but entering the car itself usually needs security too. And since people like unlocking cars remotely that leaves us with either the current RFID keyfob, or some app over Bluetooth or mobile data. The app is great but it requires a phone and is easier to put behind a subscription.
Lol no it wouldn't. That's not making it to production any more than BMW's heated seats subscription charge.
If I were to guess, how we let cars turn into computers probably started with fuel injection. The same embedded system that controls the timing of injectors (in response to numerous sensors) and variable valve timing and whatnot.
From there, feature creep.
Next thing you know, you're getting an engine code due to forgetting to put the gas cap back on at the pump (paying money to reset that because it's still years before consumer OBD2 dongles become available) and it goes downhill from there.
:)
I don't recall the exact answer, but Technology Connections did a video on this very question 2 months ago.
Engines haven't been fully mechanical in decades - and that's good! 2.4M 1mo ago 58:45 https://www.youtube.com/watch?v=0KoeY54M5VA
In the carburetor era, cars guzzled gas, and you could smell unburned fuel in the exhaust.
There is no way you can optimize the performance and fuel economy without a real time system controlling key variables like injection of fuel, and timing of ignition and valves.
Are you familiar with lock-picking?