No, you’re not paranoid. I’d call it diligent.

The premise of the statement you quoted is faulty to the core. A device internal to your home network knows a lot about the design of your home network and it knows a lot about the other devices on your network, and it can be used to facilitate/relay malicious access to your other devices if it becomes compromised.

Wyze has always struggled with security problems…and I’ll admit that I do have several wyze cameras…but long ago decided their security was not trustworthy and created an entirely new virtual lan to run just my IOT stuff from. That, at least, reduces the exposure for some of their security issues. I certainly would never have interior cameras built by wyze - that’s too risky even with robust network security on my side of it.