They didn't say it is not effective but that it is unreasonable for most consumers. Most consumers aren't running smart switches and somewhat advanced access points with multiple VLANs and configuring the firewall to control traffic flows between the VLANs. They're running an ISP provided router/modem/combo unit with no VLAN support at all.
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Network isolation is effective. What you're describing is just a poor implementation / not really isolated.
They didn't say it is not effective but that it is unreasonable for most consumers. Most consumers aren't running smart switches and somewhat advanced access points with multiple VLANs and configuring the firewall to control traffic flows between the VLANs. They're running an ISP provided router/modem/combo unit with no VLAN support at all.