The irony is that security on any such devices could be done right. Sell a router that generates a long keystring for a VPN that multiple devices that the homeowner owns can connect to. Only after connecting to the VPN would the devices be visible -- it wouldn't use each device company's servers as a cloud intermediary, but rather be peer-to-peer. The only cloud service needed would be something to point to or negotiate the VPN, assuming a dynamic IP.