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Redbox’s disc rentals are over
(www.theverge.com)
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Yup, that's the plan. You turn it in, it reimages it to whatever the next customer is likely to need, and if a customer asks for something out of left-field, it would reflash and take a bit longer.
Flashing on return is essential because it checks whether the returned item is still in working order, so it really wouldn't be an issue.
The USB port of the machine is also an attack vector.
Eh, I suppose, but they could design the USB drive really hard to infect. The more narrow your use-case, the more options you have to secure it.
They could even limit it to just HDMI, which would probably be a lot harder to attack since HDMI doesn't support much besides audio and video.