I think your hitting the aspect most IoT designers never think about: systems should fail like an escalator, not an elevator. You should still be able to get the basic usage out of the product if everything else fails.
While I'm working on my own system similar to yours, and I'm designing around the same concept, most IoT manufacturers aren't. I get why people's default reaction to IoT stuff is to run away, because they are mostly very poorly designed.
I love that expression! "Fail like an escalator" describes it perfectly!
The issue I see is that there are many things that are designed like that, but they often require professional installation or are significantly more expensive, which leads to many just getting the cheaper option which works in the best case scenario.
While I'm working on my own system similar to yours, and I'm designing around the same concept, most IoT manufacturers aren't. I get why people's default reaction to IoT stuff is to run away, because they are mostly very poorly designed.