Both are valid. The latter is often used as an excuse, though. No, your $50 wifi connected camera does not need the same level of stability as the WiFi connected medical device that allows doctor to remotely monitor medication. Yes, you should have a moderately robust way to update and build and distribute a new FW image for that camera.
I can't tell you the number of times I've gotten a shell on some device only to find that the kernel/os-image/app-binary or whatever has build strings that CLEARLY feature `some-user@their-laptop` betraying that if there's ever going to be an updated firmware, it's going to be down to that one guy's laptop still working and being able to build the artifact and not because a PR was merged.