I can understand that your business is designed around the cloud, but there are a number of markets, such as remote solar arrays where it could be used, but not everyone has reliable or inexpensive internet. In addition, the history of security surrounding cloud-connected IOT devices hasn’t exactly been stellar. The ability to host a device like this locally enables integrators to purchase and install it in environments where internet is not guaranteed.
Unless you’ve got something like wink planned where suddenly all subscribers will be obligated to pay a monthly fee or have their devices turn into bricks, I see this as a win/win situation. There is an increased market with no ongoing costs associated with every device you’ve sold.
I think there is probably sufficient skill here to create an aftermarket firmware for proper integration. While I don’t really have the time to do it myself, I could forsee some of the commonly requested items being implemented and added.