> why Microsoft allows any 'driver utility' to have internet access
Firmware updates for devices are not a thing in your world?
There is no reason we need a badly coded vendor control panel to install firmware upgrades though. On Linux https://fwupd.org/ is a database for vendor firmware, and you use one shared open source took to install upgrades for all devices attached to your system.
It seems like windows update should handle distributing the verified new firmware file if it is also distributing the driver utility to avoid any issues like this post talks about.