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They can block traffic to update servers so the computers behind the router aren't all patched up, then exploit them. They also get access to all the IoT devices on the internal network. They can also use your router as a proxy so their scraping/attack traffic comes from your IP address instead of theirs.

It's definitely bad.

If you blindly TOFU ssh sessions, those can be pwned easily in many common use cases. Legacy software configurations like NFS with IP authentication will be bypassed. Realistically the most likely scenario is using your home as a VPN, or a DDOS node.

yeah, and it's not like people recently launched a coffee shop that accepts payments over tofu ssh and a shell provider doing the same

they could try and exploit any device on your network, and since they see which servers you connect to and how often you communicate with one they can write phishing mails which are tailored just for you.