I’m struggling to understand the reasoning behind this. Like these are just lightbulbs right? What’s the value in that data that I’m not seeing

Location data, when you're home/not home, which room you're likely in/not in. Data that costs almost nothing to produce, but can be sold for millions.

Bulbs tell them when you're in the kitchen, bathroom, bedroom, etc. Relatively easy to combine it with smart tv, smart watch, security cam, and app/phone data to identify you exactly.

Combine it all and it's likely they'd be able to identify you exactly and identify what you're doing with a high degree of certainty, then micro-target you with ads or propaganda.

Honestly, there comes a point where you'd have more privacy shoving a camera up your ass. Less privacy than the DDR.

A lot of people don’t seem to understand that each individual but of data is often not valuable in itself, but it is as part of a whole.

Basically, everything there is to know about you is a jigsaw puzzle. Many companies out there want that finished piece, so they pay a premium for each individual piece of the jigsaw, and the companies you give your data to everyday are selling those pieces.