It's more like...
...they want routers that have backdoors, and logs that are verbose enough for US authorities to drop by and have a poke around if they need.
The point around security is a good one though, especially as most vendors are pretty careless about keeping their routers up to date, and most don't have an automatic update function that happens without the user triggering it.
The thing around WiFi bands is a convenient excuse to hide the fact that what they really want is control over the point of internet connection in every home across the US.