Thanks for this, Frank. IoT is a hot topic these days (I feel like I'm seeing more and more articles on the front page of InformationWeek every day), and it's easy to see why. It has the potential to positively affect our everyday lives... and negatively affect them, as you rightly point out, which gets people passionate and talking about it. It also lights our sc-fi loving nerd hearts on fire with all the crazy possibilities that could happen, which doesn't hurt. Still, there are very real and practical concerns that bear talking about before we get in over our heads, not after.
In my humble opinion, regulations are an inherently iffy topic when it comes to IoT. After all, all 'IoT' really means is 'an internet-connected computer inside a device that's not a computer' (or, devices that don't already normally have computers in them). So that brings up the questions of:
1) How can you regulate that? You can't really tell manufacturers what they are and aren't allowed to ship for IoT any more than anywhere else. It's up to the consumers to buy it or not.
2) Who's to say existing laws/regulations don't already apply to these devices - and, if so, who decides which ones and how they're adhered to?
3) Why would manufacturers do any more work than they have to? Pontificating that 'we shouldn't cut corners' never really caused anybody not to, did it? They're trying to get stuff to market ASAP... and many won't do anything not absolutely required.