Absolutely. But that's commercial and enterprise.
In the consumer space, this trend isn't going to reverse. In fact, it's likely to accelerate as things like software defined networking begin to filter down from the government to enterprise and eventually into consumer devices.
For me, it seems like largely a fad for many products. It will largely die out when it more cloud services start going under. One common issue is that many consumers do not think very far into the future. I repair a wide range of devices, and it is very common for a customer to look in disbelief when I tell them that their iphone or ipad needs a new battery. Many of them honestly believe that it is not directly user replaceable because it never needs to be replaced.
That kind of flawed thinking will soon come back to bite the people who purchased those cloud based cameras (e.g., dropcam), cloud based thermostats, routers, and many other products where the cloud element is added more for an additional revenue stream, and more control for planned obsolescence, because your ability to continue using your product is now in the hands of another company. Compare that to traditional systems where you can have full local functionality. For example, many IP cameras that are not cloud based, can record months or years of footage to either a NAS, or a PC that you are using as a DVR, and if you would like some cloud functions, you can have remote monitoring services, or set up your own remote server to have an additional copy of your footage stored remotely (just in case someone breaks in and steals the DVR)
With a cloud only device, if the company fails, or they simply take the route of skydog, and decide to just end the cloud services, then you suddenly get a useless device (and in the case of devices like the dropcam, 100% useless as they went out of their way to make sure that you would not be able to access any video locally (same with vuezone
Cloud is acceptable in areas where it is actually needed, but when companies like this simply take a feature that used to be hosted locally on a router (with remote access being provides VIA the WAN IP or a DDNS), to simply moving a webUI too a remote server that it out of your control, is an unnecessary use of the cloud, and in the case of skydog, it was done to create a revenue stream from a feature that was traditionally offered for free, locally on the router. (a possible secondary goal may have been planned obsolesce. While some companies will work to shorten the lifespan of a product by using crap components, and making it so that people can not change components that quickly wear out, but the risk of that is they will also end up with a high RMA rate, so the fad now seems to be to use low end, but not bottom of the line crap from the Shenzhen market, and then artificially shorten the lifespan by making the features that lead you to purchase the product, and make them into a service for which they can charge you for, or provide it for "free" remotely and then drop support for the device at a later date, and thus making those features you like from the product, go away.