As soon as my family expressed an interest in IoT devices, my compromise was the devices had to be on a separate network. I bought an inexpensive managed switch and set up a vlan specifically for our IoT devices. Our firewall segregates the IoT traffic from our LAN. Although I'm still not crazy about the potential privacy implications of Alexa devices and the like, I sleep a bit better knowing they do not have access to anything but the internet.
Until ISPs ship a modem/router combo that makes it easy for the average consumer to set up segregated networks, I don't think too many people are going to heed the FBI's advice.