Which one of these is worse:
a) I might be able to convince a bad IOT device to connect to an IP I control which may or may not let me do something interesting,
-- or --
b) I can just use your session cookie for GMail and reset all of your passwords for your IOT services and also everything else? And since I get UXSS, I can scan your internal network and get XSS on that IP/origin too. Or, I dunno: try to use UXSS to log in to your home router and change the DNS server to a machine I control?
The crux of your argument seems to be "it is more valuable to be able to point an IOT device at the wrong IP than it is to get UXSS on a machine on that network". That seems obviously wrong to me for any user, technical or not. If anything, it's worse for non-technical users, because they by-and-large don't have 2FA, making e-mail compromise far worse.
I only use the quality of the software in one sense: to bound how bad DNS resolution could possibly be. dnsmasq has had more than one of those style of game-over vulns. A malicious WebExtension or DNS server is indistinguishable from one with a bad enough vuln.