We're going to get to a point where no one is willing to invest any time or money (as a consumer) into products sold by a startup, because they all vanish quickly and with short or no notice. I'm already at that point.
It'd suck to be a stable startup with plenty of funds/cashflow in a similar niche to a company closing like this, and have people not willing to try your product because they're now too timid.
Only if those products are chained to a proprietary cloud offering, or otherwise dependent on the entity staying in business.
Something like a credit card is, of course, vulnerable to what you say. But the benefit to this sort of timidity is that companies making IoT things ought to lean more heavily into ensuring that their products will work even if they go under.
That's kind of inherent to someone billing their business as a "startup". The very label assures you that you get to enjoy the service 2, 3, maybe 5 years at most, but it's being built out in order to, and financed by the promise of, being sold and then either gutted for the parts the acquiring party really wants, or shut down as unnecessary competition for a preexisting service. Or, if no interested party shows up, go down into the sea of obscurity as another startup come and gone.
It'd suck to be a stable startup with plenty of funds/cashflow in a similar niche to a company closing like this, and have people not willing to try your product because they're now too timid.