So, yeahh, the 1 TB of data is bad, but that seems more like a bug. The bigger issue is that people are buying "IoT" products without even realizing it. They're looking for a simple, decent coffee maker, and what they get is a coffee maker bundled with an even shittier app that can be insecure, become outdated, be full of bugs, turn into a paid service, or eventually stop working and prevent you from using a product you legally bought. And who knows what other issues it'll introduce along the way.
I fucking hate how apps and connectivity have become the default for practically everything you buy, even when there's absolutely no clear need for them. They usually offer very little additional convenience while introducing all the issues mentioned above. More things to break, more security and privacy risks, more dependencies on services you don't control, and potentially a perfectly functional product turned into e-waste because some company decided to stop supporting its shitty app.
To me, the trade-off is almost never worth it. If I was naive I would think for other people the trade-off is just OK for them but actually they're not aware they're doing this trade-off at all.