Really? The "Internet of Things" has been a pretty common phrase in the tech world for almost a year now. I see it at least once a week.
But yes, it is terrifying because of the security implications. Recently, I saw an article where some white hat hackers were able to record audio from Cisco VoIP phones at their company by performing the following attack:
* Spear phishing attack to get people to print a special, corrupt print job to a specific model network printer known to have a security weakness.
* Install an attack platform on the compromised printer. Now attacks can be staged from within the network, from a printer (really just another computer device this day and age).
* Use the attack platform on the printer to attack a vulnerability in Cisco VoIP phones.
* Install malware on Cisco VoIP phones that makes the mic active at all times and uploads captured audio to an external server run by the hackers.
Terrifying stuff. In the grand scheme of things, Windows workstations are quite hardened from a security perspective compared to your average network printer or other network device. These things tend to go completely unpatched by the endusers, and that's even if the device manufacturer stays on top of security issues and releases regular updates.
So many device manufacturers are networking their devices and are completely clueless when it comes to security.