Totally agree.
This might be a problem to those neanderthals that still think keeping their code secret is both viable and useful, but the only way it exposes end users is with the possibility of replacing code on their device with an unauthorised trojan. Which could be done just as easily, if physical access is available, by simply replacing the device.
Do you mean 90% of the software world by those "neanderthals"? Because having the software out in the open is not
that common.
The issue is that that a trojan could be potentially deployed remotely, through another, remotely exploitable and by itself not a very dangerous flaw. Such attacks are pretty routine these days. That something requires local access to exploit doesn't make it any less problematic.
Also, not every exploit is there to turn the device into a botnet zombie or to steal the end user's data. Sometimes stealing the firmware or breaking into the device itself is more valuable. People on this forum regularly complain about Chinese cloners ripping them off, so I would assume something like that could be quite an issue? Also, the flash on these devices often contains things such as wifi keys/passwords, making an easy-to-break IoT device an ideal target for gaining access into the network.