See, I think they absolutely can reactivate the device. My belief is that they simply blacklist the 25 digit device ID in their systems if you don't maintain a continuous subscription / activate it within 13 months of purchase. In the previous section, section 8, of the Ts and Cs they state in part that:
"Upon termination of the Terms or cancellation of the Services, you must immediately stop using the Services and your license to use any of the Services is automatically and immediately terminated. All provisions of the Terms that by their nature survive termination or expiration shall survive termination or expiration of the Terms.
We may, in our discretion, allow you to renew your subscription after cancellation of the Services. You may be required to pay reactivation fees"
So we have one section stating that hardware can't be reactivated, and the prior section stating that it can if they, in their discretion, allow it and you pay a reactivation fee. Why would that be in there if the hardware itself is rendered permanently useless upon deactivation?