The only "advantage" to that is that companies would sell a lot more devices as people end up realising that their phone/central heating/doorbell/dashcam etc doesn't get any OTA upgrades and is now almost always showing the wrong time.

No, the advantage is that it would allow you to optimize for circadian rhythm without having huge disruptions twice a year.

I fully acknowledge that there would be some major disadvantages and challenges, but they mostly strike me as logistical and engineering challenges, rather than technological limitations. My car, which is not connected to the internet, knows when it's been a day, because it gives me time in AM and PM. There's no reason it couldn't count days and automatically adjust time based on this. Same for thermostats, microwaves, ovens, TVs, etc.