The WiFi isn’t the problem, it’s that the diapers “phone home” to some company’s servers. There’s no reason you can’t have “smart” devices that connect to your own personal computer or mobile to accomplish any useful things they could do. All that data should be private and owned exclusively by the owners of the devices. In fact, there’s no reason to connect these devices to the Internet at all. All IoT devices are spy devices.
RE: Get 'em while they're young! Chipping people from birth to monitor activity patterns... and urine