You're Intel. The year is somewhere around 1989. Your hardware interface that you export to regular software has gotten complex enough that you want to implement some of it in some kind of software that you can implement at a higher level than just logic. You also maybe want your hardware partners (ie. motherboard and system manufacturers) to be able to change parts for their implementations. Additionally some of this code might eventually end up being hard real time with the possibility of damaging the chip if it doesn't run at the correct window (think power management). You don't have the area budget for rewritable microcode of the size you'd want; this code has to live in DRAM.
You look around at the system software people are running on x86. At the highest quality you've got OS/2, and it goes downhill fast from there. Most end users are running DOS (from several vendors). So you write a higher privilege mode that runs underneath DOS, can actually be pretty close to a tiny RTOS kernel, and document it. But the whole point is to be relatively transparent, and definitely inaccessible to kernel mode, which you don't trust to pull its own pants up after it uses the bathroom.
Then later, when your corporate vendors are asking you to secure the boot chain, it only makes sense that this mode is also cryptographically signed.
And I think this is a more interesting story (and probably closer aligned to the truth). That is, we can get to an anti-user feature that can't be truly owned by the final customers through small steps where each felt like a pro-user customer product decision.
That being said, there are benefits of having SMM protect firmware integrity from a malicious/compromised kernel. On most AMD64 platforms, SPI flash can only be written to by SMM and that is a foundational piece of the PC security model (FW update, authenticated UEFI variables, etc). This has nothing to do with copy protection, DRM, or backdoors.
The incentives are such that if it's possible to make hardware that's cryptographically locked into being aligned against the interests of its supposed owner, that's exactly what will be, which is why we now have two fully-closed systems (Google Play Services and iOS), one 99%-closed one (macOS -- Apple controlling the 'notarization' signing and showing their willingness to use it for petty reasons proves macOS is closed), and one clearly marching toward the same basic idea (Windows).
What's more depressing is, even if suddenly every court agreed with me, we'd just transition overnight into a leasing paradigm, where vendors would cease to sell devices, only rent them to us. "As the device owner, should we not have the right to govern its use to only responsible purposes and protect it from 'mAlWaRe'?" And the devices would be quickly 'accepted' by the market, as "unmanaged" devices would be locked out of everything, just like you can't use banking apps, streaming apps, or even the McDonald's app, on a rooted/jailbroken phone today.
It's even worse than that. It's gotten to the point that "operating systems" aren't actually operating the system anymore. Linux is just the "user OS", a tiny blip on the overall system schematics. Just some app to be sandboxed away from the real system.
Devil's Advocate: can you control every transistor in a good old Z80?
Of course, that's not where the goalposts are. Any piece of hardware will necessarily have limits as to the amount of introspection and manipulation that it allows in the programming model.
What Intel have done is built a "grotto" in the chip that is extraneous and deliberately inaccessible.
(The fact that there is such a thing as a higher privilege level than root is what annoys people).