IOT boxes can't be on open ports, because these are discovered by sniffers almost immediately, due to back doors and vulnerabilities which cannot be fixed ... so their "internet access" can only be as a client, calling up some server, and hidden behind a NAT router.
I am not convinced of this argument. For an IoT box, you ought to be able to limit the "attack surface" to a manageable size, with or without "full TLS support."
To some extent, I think it's a myth spread by the "IoT Server/Service" vendors (for obvious reasons.)
And laziness by IoT developers. "We'll just run linux! That'll make it all easy!" :-(
(For instance, are their any known attacks for the WizNet embedded TCP chips? Or the default ESP8266 AT-based TCP connections? (DoS doesn't count.))
Sure, if you are making devices with NASA or Google levels of engineering, you can be fairly sure you have built a box that isn't vulnerable, at least to a trivial exploit. It's not laziness, it's the engineering tradeoff of having to build a working product you can sell for $30 on Amazon, there just isn't time or money available to hire high quality engineers and for them to put the time into security engineering or evaluation. So that's not the situation with cheap consumer electronics that are built out of half-assed example code stuck together with scotch tape. Chances are very high that some kind of vulnerability exists, since the engineering against them hasn't been done, and then because of the nature of the product, it's often unlikely to get fixed.
In some cases the issue might not even be immediately apparent to the device owner, if it ends up getting used as an amplification vector for DDoS or something like that, which is the most likely scenario for an embedded device. The only thing saving these devices is pretty much that they are almost never exposed to the Internet directly, and that there are so many different varieties of things to exploit. If there's a product that a) sells in large enough numbers and b) is widely exposed to the Internet, I can all but guarantee it gets exploited in short order to be used as a spam cannon or whatever. And is the vendor even incentiveized to care about such issues at all? Doesn't really seem like they care once the device is sold.
But even a basic DoS is dangerous. Maybe your unethical competitor finds out about this... Pretty trivial to scan the 'net for open boxes, DoS them constantly, and cause a lot of damage to your reputation.
Add on the issues with trying to help customers set up port forwarding or whatever to access their device(s), and the path towards having them be clients for an online service is pretty cemented. It avoids most of the security concerns, issues with having multiple devices on the same network, it punches through pretty much any NAT, it's easy for the user...
There are also likely to be vulnerabilities in the application, not the network stack, so I'm not convinced that using a TCP chip helps you much here, and if there *is* a problem it's more likely to be found due to ubiquity and then you can't do anything to fix it, so I dunno, seems like a bit of a wash.
If you restrict yourself to TLS 1.3 then the range of mandatory cipher suites is much reduced, see RFC 8846 Sect 9.1.
Should be able to get away with TLS_AES_128_GCM_SHA256 and TLS_RSA_WITH_AES_128_CBC_SHA which are all that is mandatory in TLS 1.2 + 1.3, if you only care about connecting to relatively modern servers. Some old old stuff might require RC4 or MD5 or something, but meh.