As someone that sells and install high-end smart home/automation/AV systems, and consults with a range of clients from entry-level DIY to mid-range and higher installations, I could write for hours on this topic.
But let me distill it down to a few points, not often covered by the media/pr, et. al.
The biggest users of smart home products and systems are “power users”. Either consumer users (Apple, Google, Amazon) or hobbist/techies (Home Assistant and a few other techie systems).
The biggest issue I see is that the majority of these early adopters have very limited expectations and tolerate low-quality products.
Too many people are complacent saying they “love their smart home” followed by “I only have to reset xyz a few times now and then”.
If all smart home product users voted with their wallets, stopped buying these products, and returned them en masse, the industry would be forced to take notice and respond.
Although there is a race to the bottom on price, that’s really the fault of the industry and the consumer should not be blamed for buying the low/lowest price products when they are available.
IMHO, quality is not always proportional to price. There are only a handful of high-end luxury systems ($25,000 to $200,000 or more systems) and the quality of certain of those brands can be worse than some popular consumer brands.
Although I have some issues with Lutron relating to product line, pricing, and business strategies, I can truly say Lutron products truly meet the “works just like a toaster” in terms of reliability.
I have multiple clients with systems, both entry-level Lutron Caseta and luxury systems in the $10,000+ plus range, that have been running for multiple years without even a reboot.
I say this not to promote Lutron, but to prove, by exception, that is totally possible to build a reliable, robust, and smart home / home automation system if a manufacturer truly wishes to do the work.
Yes, Lutron still relies on a proprietary wireless transmission system and a walled-garden ecosystem with controlled access points to hand-selected third-party systems, but it works.
And Yes, although Lutron is a member of the CSA, they have yet to offer any product, or any statement of intent, for the highly touted Matter standard promoted by Apple, Google, Amazon that has, realistically, been a total market failure so far.
If you were Lutron, and already had bespoke connections to Apple, Google, Amazon and all the major luxury systems without Matter or Home Assistant, then I think you too would understand their reluctance to pollute their track record of reliability just for the PR benefit of supporting the “open Matter standard”, right?