The end user does not care about the "computing stack" at all. "Does it work" and "is it cheap enough" are the main considerations.
And "the product would be better and cheaper" is really wishful thinking. I've worked in this industry for ~4 decades, so I really remember vividly working on those "less messy and more elegant" systems, and no, building a remote-controlled doorbell with life video on one of them would neither be better nor cheaper.
The sheer idea of doing this on a 128B machine (Olivetti Programma 101, my first machine) is ludicrous. The idea of processing any kind of video on a DG Nova Eclipse(second one) is... ambitious.
The first time we had machines with the processing power to do useful things with video for an at least semi-reasonable price was sometimes around the introduction of the Pentium, with dedicated hardware to process the incoming camera stream. I happen to know because I moved a video package that required a cluster of SGI machines to said P90.
Yes, the code was small. The video processing core was also the result of 6 rather sleepless weeks, squeezing every single cycle out of the CPU. I couldn't just grab OpenCV and make it happen. It also involved lots of spectacular hacks and shortcuts that happened to work in the environment in question, but would break down for a general purpose video processing system.
Around that same time the world also just barely had figured out the basic ideas behind making WiFi work usefully. But let's assume we would've just hard-wired that camera. If you wanted to do that with an embedded system, you wrote your own networking stack. That takes about 18 months to make work in anything that's not an extremely controlled environment - it turns out people's ability to misread networking specs and produce barely non-compliant systems is spectacular. (Source: Been there, done that ;)
So now we have the most basic system working. We have, however, no way of storing the video stream without more dedicated hardware, because realtime compression is not possible. (And if you think that dedicated hardware was less messy and more elegant... /lolsob)
Was the total codebase smaller? Yes. Were the programmers happier? F# NO. Would it have had anywhere close to the functionality that something like Ring has? Yeah, really, no. It's size would've been roughly a large desktop tower. It's cost would've been ~$5000.
The "good old days" really weren't.