I'd like to disagree but can't. Letting a foreign power "sell" internet connected microphones and cameras into "our" homes is totally asking for it. I wonder what the rules are around security cameras and similar?

Not sure I mind the routers so much. By the time the traffic is traversing the router it had better be encrypted. OTOH an army of domestic routers can at the very least be made into a quite astounding botnet and if we were to dig deeper I'm sure the data around which hardware address comes online and when could be made extremely useful.

In short: you're right. It's not protectionist bullshit, it's a wide variety of reasonable concerns. It also might be a horse that's bolted.