So to answer the main question whether you need VLANs:

No. The same can be accomplished by simply adding more hardware. For
instance to separate your internal network from SB devices you can
simply place a masquerading router in between. The same for less trusted
IoT devices, just branch it off by adding secondary routers directly
behind the ISP router. That's not a bad idea either way because many
ISPs install back doors in their supplied routers, officially to be able
to perform maintenance but who knows what else they do?


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