The FSF had to make a compromise, but many people think they drew the line in the wrong place. When no reasonable hardware can meet the "compromise" version of RYF it just causes users to bounce off.
I think the issue isn't that much that no reasonable hardware can archive it, but that the "compromise" actively encourages not just insecure systems, but also making systems even less free.
It's a bit like saying that a Windows notebook is only "free" if you can't install other systems and updates are disabled. There probably is more or less reasonable hardware which could implement these restrictions, but such hardware would in no way be more "free" than a notebook where you could just install Linux.
I think a good analogy is the parable of the cobra problem. A city suffers from too many cobras so the government puts a bounty on each dead cobra you hand in. The result? People massively breed cobras to hand them in. The government realizes this and stops the program. Subsequently all breeders lose interest and dump the cobras, leading to an even bigger problem.
