It's not just about cloud connectivity though: I don't want my home automation hardware speaking IP or anything like it. Nor do I want them to need a complicated enough protocol to justify requirements like firmware updates. All of this introduces opportunities for security flaws and the ability to create botnets.
Home automation hardware should be simple, take simple instructions over local communication bands, and then a single central controller should bring the greater intelligence and access.
I think my Insteon thermostat is nearly the ideal smarthome product: It's a thermostat, and can work entirely standalone as just that. It cannot be updated or reprogrammed. But it will accept commands (no different than button presses on the front of it) over the RF protocol, and of course, send its sensor data and operating status.
Things like incidents where Nests had software updates that let everyone freeze or whatever in the winter just... isn't really a concern with a good design like this.
