But neither is doing what NI is doing! Steinberg offer a license replacement policy if you lose the dongle. Avid uses iLok, where there are several options available.
Both activate software in perpetuity once the license for this is on the dongle. Indeed, Avid even call this license type Protools Perpetual. Why do they offer this? Because they know many pro customers demand a perpetual license so they are never put in these sorts of situations!
Both companies methods are superior to challenge response in terms of a users control over ownership. Either company can go out of business and, provided you have a compatible machine, you'll still be able to use that software 40 years from now if you take care of the dongle
No further intervention required from anyone. You can reinstall your OS as many times as you want. No problem. You own the software license.
Companies who are not prepared to turn over a perpetual license, to the user, which can survive both OS and hardware changes, are effectively RENTING you their software. Your "ownership" is only valid for as long as the company wants it to be. They are in complete control, even over whether you can use what you pay for.