It's great to see someone advocating for alternative points of view with respect to IP. It's a moot point though. Artisanal hardware is an intellectual dead end. Cost and IP and economics and whatever are a bunch of red herrings. Hardware standardization is pretty much always superior to fragmentation. I've never heard a hardware engineer advocate for fragmentation! Bunnie Huang should be advocating for the artisanal…
I agree that this model of iterative improvement won't yield the next big technological breakthrough. But the big consumer electronics manufacturers aren't really innovating either. They might make a product a little bit flatter or give it another camera, but I can't think of a real game changer in the last five years.
Once all the technology is there and just improves iteratively the described model seems to be better suited to find as many local optima in the possible product space as possible (and not just a few big ones).
I could see how a lack of patents would lead to more secrecy in R&D labs. If what you are doing is truly novel and complicated (like developing a smaller node type in processor manufacturing) keeping the research secret would keep you as safe from competitors as patents. And if you aren't (like inventing rounded corners on smartphones) then you shouldn't have gotten the patent in the first place imho.