I still don’t think that really avoids the issue of devices losing functionality if the company folds. If an IoT company goes OOB, you also lose things like security updates, tech support etc. I would give an ‘orphaned’ IoT product a year tops before it was no longer safe to have on your network.

I think consumers need to understand that when they buy a connected device, they are also buying a license to the software that powers it. That license is generally not perpetual unless specified.