Bro, how do you think the things would spy on people, if they don't have computers in them? You're just splitting hairs because you think it's moral to spy on everyone through a sextoy with an internet connection instead of any other computing device with an internet connection, just because it isn't illegal yet.

The whole "those with nothing to fear have nothing to hide" bullshit falls apart when used on you. You may not have anything to hide, but I doubt you'd be happy to let law enforcement watch you masturbate, or sleep, or shower, because you don't have anything to hide. Invite them in to record you talking to friends and family to ensure you aren't communicating about crimes. Sure, you might not have anything to "hide" right now, but there's plenty of things you don't want to share, and you never know what the government is going to be like in the future. Imagine an extremist party gets to power and you hold freely recorded views antithetical to their beliefs? Or you or a family member jokes about speeding or shoplifting and now you're flagged as under suspicion for criminal activity, a preferential suspect for any unsolved crimes geographical near them because breaking the law once makes you more likely to break it again.

Silently watching everything people do isn't some zero cost activity. It's people watching you, your kids, your friends, your family, at all moments of their lives and if you don't think it'll be abused then you're out of your mind.