This is classically what we call “end point security”. Literally, it's the end point of the Internet.
Let's just step away from the question of who provides this, just for a moment. Whatever is on that end point, if it isn't secure, no matter how good your network is, you've just created a major vulnerability. If you go back to the analogy I gave earlier about transfer of money—armoured cars and armed guards between two cardboard boxes—that's what you get. You might have secured the chain where the information sits, but the problem is the vulnerability at either end.
Regardless of who provides it—and there are providers from all over the world who fall into this category—when we look at the Internet of things more broadly, because security is an afterthought and it's expensive, it doesn't get incorporated. What you've described is exactly correct. No matter how secure the network is, that immediately creates a vulnerability, and that can allow someone to penetrate the system and get into your home network, for example.
The classic story that a friend of mine who used to work for the U.S. government used to tell me was that he always waited for someone to buy that wireless printer, because it was great. You didn't have to connect to it—this was 20 years ago, when these things first came out—but it immediately broadcast a signal that allowed you to penetrate the system and get in. His job was protecting the U.S. government from these threats, but that was his description.