You are suggesting we stop progressing because of a challenge. Shame. Thats such backwards thinking.
I think the core point is that the same technological changes needed for Google to integrate with devices are the ones that expose them to hacking. It's not a small point.
Implementing security protocols is indeed the correct way to approach this, IOT manufacturers are facing legal backlash and will likely make devices more secure moving forward.
It's actually deeper than that. Because there's a "network effect" (https://en.wikipedia.org/wiki/Network_effect). That is to say that even if my device is securely connected to my smart phone, if either my smart phone or my cloud account get hacked, the hacker can still exploit and potentially hack the connected device, which can then potentially be used in further hacking. And even if the device isn't hacked, per se, it still gives a hacker with access to the phone/computer more ways to do damage or exploit the target.
Security is hard - a lesson we keep learning over and over. This is a problem that really justifies some outside-the-box thinking, and it sounds like that's not happening.
I think we can agree that it's a false dichotomy to say that the only way to remain secure is to keep devices disconnected.