This is unfortunately accurate, sometimes due to real constraints and more often due to loose threat models. I am hopeful that more open source firmware options (e.g. Zephyr RTOS) and more software investment from silicon vendors is helping to change the status quo. That being said, we are still a long way away from a "Let's Encrypt movement" for embedded devices.

> physical security system

> can be trivially MITMed

Crazy how poor security can be even from a purported security vendor.

Over a decade ago, I created an AWS ELB to serve a production API. It was HTTPS-only, using an Amazon-signed certificate served from ACM for my employer's domain. Right after deployment, logs showed a regular pattern of 404s trying to POST/PUT to my API at paths I didn't support. Thousands of requests per hour, and they continued for days. It didn't look like a DoS--the paths looked like someone else's API.

I got curious what all the traffic was, so I added a route to the API that saved some of the uploaded data. It was live home surveillance video and photos! Indoors, outdoors, baby monitors, living rooms, etc. It was pretty easy to find which vendor's hardware was doing this (from headers, paths, watermarks) and I reached out to their security contact to let them know what I found. They responded generically but didn't seem to care that much.

In short, because HTTPS was required, and an ELB gets assigned IPv4 addresses arbitrarily, I can only conclude that a whole fleet of home security cameras were sold across the US that hard-coded the IP address of their cloud server and had certificate validation disabled.