This is where regulation comes in. For the TV makers. Things should be secure by default and come with fines if they aren't.
As for the extracting of data, yes that happens on a massive scale. In free products that no one is forced to use. And I would argue that, by now, almost everyone should know that comes at a price, it's just not monetary to the user. At that point it's a choice people make and should be allowed to make.
The "it spies on you because it's free" thing hasn't been true for many years now. TVs that cost almost a grand still spy on you, as do cars that cost tens of thousands. Youtube/Netflix/Spotify/... still spy on you even if you pay for the premium/whatever tier.
If something is free, you're the product. But if it isn't free, you're paying to be the product.
As for the extracting of data, yes that happens on a massive scale. In free products that no one is forced to use. And I would argue that, by now, almost everyone should know that comes at a price, it's just not monetary to the user. At that point it's a choice people make and should be allowed to make.