Your point 2 is sound as far as it goes. There have been consumer routers sold with defective hackable firmware. And certainly many people (though perhaps not your MIL) have defective configurations.
Your point 1 & 3 are, IMO, pure BS & dangerous.
Yes, nobody is targeting your MIL by name. Instead, the botnets are simply trolling the entire address space of the internet, attempting entry at each router/computer they find. And there are enough of them that your MIL, and you, and me, and my next door neighbor, are tapped every few hours by some bad guy group based somewhere.
And it’s the logistical power of them being able to rattle the network “front doors” of millions of PCs per hour that makes hacking for identity theft profitable. They can’t send live people around to break down physical doors & windows nearly that efficiently. Which is why Joe & Jane Middle America don’t have to worry much about coming home to find the front door broken open & their PC gone.
The thing I try to tell amateurs is that their network connection to the internet is like a SciFi portal connected directly to the streets of Mogadishu. *That’s *what’s just behind the connector in your wall. Not the rest of your calm suburb of civilized people; instead a wild West of Pure Anarchy & endemic organized crime and violence. With zero police or our-side military anywhere. And every few hours somebody from there will shake the crap out of your virtual front door hoping the lock’s a little loose, and they’ll try sticking their collection of a few thousand stolen keys in it. Maybe one will work today.
THAT’s what we’re all up against, both homeowners and pros who’re securing seriously important systems. In addition to all the above, the pro’s have to deal with targeted attacks actually aimed specifically at them.