The line is basically programmability. If a device runs "firmware" that can't be changed, that's really just a part of the design of the hardware you bought, so the fact that you can't see or modify the source code is irrelevant- even if you could, it wouldn't give you any more control over the hardware. If it runs firmware that can be changed, it's a programmable computer, and by running proprietary firmware, you're giving up control you would otherwise have over your computer.
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