[mindslight]

So does designing a proper protocol that doesn't rely on tamper-proof hardware as a cornerstone.

The essential idea behind software freedom is that your computer runs code wholly of your choosing and functions as your agent. The parties to a transaction voluntarily meet together by adhering to a mutually beneficial protocol.

Allowing other parties to know exactly what code you're running lets the more powerful party dictate that your code works for their benefit, effectively leaving you without a computer.