I've been thinking about this a lot lately. The ideal solution seems to be to encrypt traffic between all hosts on the local network. Are there any good resources for how to setup IPSEC or something on a local wifi network?
The solution already exists in the form of WPA2-Enterprise auth (802.1x), but support is still fairly sparse on consumer devices like cheaper WiFi routers or media streamers. It's also difficult to configure and manage, for the average user.
