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This wasn't nearly as interesting as the headline made it sound.
It's a physical box you purchase to effectively break the law, so some of the architecture is going to be shady because it has to be.
There's nothing special or nefarious here. Indeed I've worked on projects that had to take the same considerations into account.
The "someone else's Hulu account" claim sounds like bullshit to me because it doesn't make sense from a business perspective. They'd want to control the accounts in question and rotate the passwords regularly, again to avoid freeloaders. More likely they've paid for 25ish Hulu subscriptions in every region (hence the initial call for IP geolocation) and are then relaying credentials to a box based on this info.
The only really sketchy thing in this whole video was the disabling of TLS checking, which was likely done to get around sketchy pirate websites with bad or nonexistent certs. It wasn't clear though which part of the OS this applied to. If it's only doing this for the pirate streaming, that's sort of a bullet you have to take if you want the service. So long as the only data being sourced unencrypted/unverified is some audio and video, you're fine (assuming you've already accounted for streaming such data in your jurisdiction, ie. you've got a VPN). If you're pulling down software updates though, you're gonna have a bad time.