Earlier quoted context omitted.
Do they require auth and use solid crypto? If not, they are vulnerable, it's just that the vulnerability requires the attacker to be within range. People thought old analog 900mhz cordless phones were fine until others realized you could just tune a radio to that freq and listen to your neighbors.
They're not vulnerable in any way that matters. If you manage to get a device in range you can... turn my lights on and off? You can't program them to do malicious things over the Internet. They don't have any sensitive information you can access. There's no damage you can do them. The problem with saying you need auth and crypto is now you just added a bunch of complexity you have to maintain and update and hence no…
But the 'I' in IoT is for internet. "Don't build IoT devices" is not a helpful proposal to increase the security of IoT devices, which is the scope of this initiative.