The Need for Open Hardware
How is hardware not currently open?
The biggest threat is that it will be embedded within the next generation of Intel CPUs. Up until then you could build a PC using standard parts and avoid Palladium. But once it's within the CPU, you'd have to find a CPU that didn't have it...and both Intel and AMD are in bed with Microsoft.
Maybe IBM, or one of the Asian manufacturers would be interested in producing a non-Palladium CPU...if the market resists Palladium enough, there will be a demand for non-Palladium CPUs...and the PCs that are built around them.