There’s only one case I’ve found where Wi-Fi use seems acceptable in IoT: ESPHome. It’s open-source firmware for microcontrollers that makes DIY IoT sensors and controls accessible over LAN without phoning home to whatever remote server, without trying to make anything accessible over the Internet, and without breaking in any way if the device has no route to the Internet.

I still wouldn’t call Wi-Fi use ideal even there; mesh can help in larger homes and Z-Wave/Zigbee radios tend to be more power efficient, though ESP32 isn’t exactly suited for a battery-powered device that’s expected to run 24/7 regardless.