Many products have flaws, but if the worst that can happen is that the customer feels ripped off, they don't get recalled. There might be remedies under a express or implied warranty, but tech products typically disclaim all of that in their terms of service.
Just that attackers didn't choose to destroy a device in this instance, but just erased it, doesn't mean allowing control of all software on the device to randos on the internet, by not patching a root RCE vulnerability is not a physical safety issue.
Having total remote control of an IoT device doesn't mean any of these things. Thermal protection is hardware driven typically on die, on cheap devices fan control is implemented in hardware because it's cheaper and easier than software solutions. Voltage regulators are hardware devices that aren't adjustable, even adjustable ones have a working range that is set via resistor. Switching power supplies aren't software driven.