Ok I was wondering this. It sounds like to keep everything secure and the corps happy, Palladium must be secure. It's made by Microsoft, and I have a feeling that MS is not overhauling it's staff to be "the best of the best".
So if MS can't program a proper operating system due to incompetence and intention(so the system sucks on purpose), how can they be trusted with Palladium. MS would want it to be as good as possible, but will MS overlook it's pride and get a REAL team of developers to make it? Probably not. You can change orders(ie:make it good), but you can't change competence levels of the same incompetent people.
This would mean that's there is one too many slip ups that are unearthed... and Palladium is fucked. If the corps want control of Palladium, then they start seeing exploited flaws, they might back out or make a fuss. So they make a fuss, MS tries to fix it, but it's just a rehash of the windows patch happy syndrome.