The way you describe it, I can see that being a viable product. To some extend this could be HP so focused on a very niche segment, like Microsoft with Recall, that HP+ actually seems like a sensible idea. They then forget about the fact that this is just a small segment of they customer base, but they don't really communicate with the rest, so they just roll out this product to everyone and it fails.

However, HP isn't keeping this around, they are discontinuing the product line all together, and from the article it seems like they also forgot about the needs of those large organisations (can't assume that the printers are allowed online, for good reason).

It does seems like it could be a reasonable, but probably less profitable business, if it had been better designed and targeted.