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Ledger was going to push out a product where they could back up your seed in the cloud if you pay them every month.
That by itself is not the issue, but rather the fact that the way they plan to implement this has revealed that private keys can indeed leave the secure element, which runs counter to the fundamental principle that makes Ledger devices secure in the first place, nevermind the fact it also contradicts to how Ledger has historically marketed their devices.
To top all of this, Ledger (from CEO to CTO to ex-chairman to support) has been keen on antagonizing and gaslighting the people speaking out about this issue i.e. their very customers.
Lastly, beware of the contrarian apologists trying to diminish all of this. They only make sense if you ignore the nuances involved in the issue.