Earlier quoted context omitted.
Define "secure". If you've "stuffed the key in there" in such a way that other people can get it out again, and it works across all routers of that model, then it's possible for an active attacker on your network to MITM your connection to your router. So it's slightly more secure than cleartext but not much; about the same as a random self-signed certificate. It is definitely a hard problem because there's no easy w…
AFAIK CA can't issue certificate for more than two years. So if you've bought the device two years after it was manufactured, you're getting error and it's even worse than HTTP for user.
Certificate Authorities use the difference between 825 days and two years to offer certificate renewal weeks prior to the expiry date while keeping your "extra" days. e.g. your certificate expires 17 February 2020 but you renew today for two years, they can issue a cert which expires 17 February 2022 because that's less than 825 days in the future, if the rule was a hard two years they couldn't do that.
As to how you'd fix this: One option is firmware updates. After all a device which goes two years without firmware updates is also not in good shape, so you could arrange with a CA to bake certificate renewal into the firmware update process. At scale it would totally make sense for a CA to offer to issue renewals at say 10¢ per device renewal for up to ten years from inception date.
The certificate issuance does not require knowledge of the private key, that stays on each individual device, renewal just issues a newer cert periodically to the same device for use with its existing key.