The time to let it burn is now, gradually, while we're not that interconnected yet. It may inconvenience a lot of people, but continuing the status quo will lead to a lot of people being ruined or killed in the (not so distant) future.
This is probably the only way to enforce the correct incentive for manufacturers. Build them right or they will fail.
IoT being so hyped right now is specially troublesome since all they will care is time to market, and when the market is filled with insecure devices what else will there be to done?