>The more insidious problem that regular people come up against every day is devices that depend on cloud access.
That idea doesn't hold up in reality. Open source projects with open protocols allow users to host the server side tools at home. The fly by night behaviors you're describing are almost unique to closed source, proprietary solutions such as this home automation system, which is now bricked.
>Perhaps some sort of requirement to escrow cloud algorithms or whatever it would take to open source protocols.
Open protocols are not enough. That doesn't address the security problems that arise from unpatched firmware. Whether it's the OEM deciding to pull support or some 14 year old poking around stuff he doesn't own, or some kind of 2038 time bug, the result is the same. You can wind up with a brick at any time.
This all will continue until consumers grow a brain.