Security measures should be evaluated based on their own merits, not by appealing to friendship or any other relationships. We can lock our front doors and have a healthy relationship with our neighbors! These two things aren't mutually exclusive. Though I will add that trusting government authorities not to routinely abuse their powers is a hard ask given their track record all across the globe, even in democratic countries.
WiFi is ubiquitous and is used to exchange sensitive information 24/7. Its compromise can result in financial, reputational, or even physical risk. Considering that raw signals can be intercepted outside of our homes, devices on the network should at the very least be mutually authenticated and their connections encrypted.
Also, let's not forget about the devices too. Say you trust the people you let into your home. Can you also trust their devices and the software that runs on it? Do you trust your work laptop and its "security" software to respect your privacy? Do you even fully trust your own devices? Do you have faith in current commercial hardware and software to respect boundaries, or even comprehend the concept of user ownership? Because the answer to all these questions increasingly sounds like a "no."