It's not a legal stretch to extend CALEA wiretaps to IoT devices. And if the device manufacturer cooperates (in the same way ATT does), then the hurdles shrink drastically.
What does their business situation have anything to do with it?
If I hosted 10 billion dollars worth of unrelated business functionality, then told you to provide me with access for widespread surveillance purposes in an unrelated vertical of your business, you would think that is justifiable?
I beg your pardon, but what color is the sky where you are? Business doesn't work that way. Neither does ethics or morality.
Profit does not whitewash societal harm. It may create other business opportunities to remedy negative externalities, but there is no guarantee that the nature of the harm inflicted has a profitable capitalism compatible remediation.
The "government wants to listen to every Echo user" idea is paranoid fantasy.
The "government would really like to listen to these individuals, but doesn't want to go through full court proceedings" is less fanciful and not without precedent.
It's not just profit. It's the morass of backroom bargains to stave off regulation, honest desire to "do good", future contracts, and political goodwill.
There's a rich history of US technology companies enabling the government / military for all of the above reasons.
It's not a legal stretch to extend CALEA wiretaps to IoT devices. And if the device manufacturer cooperates (in the same way ATT does), then the hurdles shrink drastically.