It is bad.
But think the real danger in Flock is the aggregate data, tracking between camaras. So if someone hacks a single camara, they probably don't get much, unless it is pointed right at someone, which is bad. Aren't they selling these as should be pointing at traffic? If they are pointing right at people, like at playgrounds, then they are being installed illegally to begin with ?
i think this is actually good, because there are differences between the images they found, and security settings that the company claimed.
They had not admitted before to tracking people, but their software is clearly submitting them. They had not admitted before to looking at bumper stickers, but turns out they do.
I wonder if they could find all cars with Bernie Sanders bumper stickers within X blocks of a polling place.. I can imagine that (or similar queries) might be very useful in the wrong hands.
A network connected device that can be hacked is a small step away from being the first foothold into its server. The fact that on-device security is this atrocious suggests that their server is not any better quality, which means hacking it would probably not take much effort.