One issue with those cloud reliant designs the such a strong thirst for planned obsolescence that they will increase points of failure, complexity and unsustainable infinite growth models, all to have a way of shortening product lifespans without introducing unpredictability from using unreliable components, (e.g., when some companies used capxon branded capacitors).
Most of the restrictions for local access, makes for a more expensive service. For example, cloud reliant cameras where they make sure that you cannot stream from the camera locally, thus they end up with a service where each camera has to upload video to a remote server at 2Mbps just so you can connect to the remote server and stream from it at 2Mbps. It is insanely wasteful when the device with the video feed is literally on your local network and all you want to do is view the live feed. You then end up with a lesser experience as you now have bad latency and a huge delay compared to what is happening in real time. Those restrictions are often just in place so that you cannot run your own NVR using their cameras.
The overall issue is that it creates an unsustainable business model where after you reach market saturation, the only way to keep the business running is to hold the hardware ransom (what wink did), or Offer a "free" cloud service but EOL the devices after a while and try to force those users to upgrade to a new device that will have a 900% profit margin, and just repeat every few years.
Imagine if they did a cloud enhanced model instead where hardware is sold without the insane markup. At a free tier, you could have products like a camera essentially use the cloud server to just maintain an up to date dynamic IP, and just help facilitate a peer to peer connection to the cloud device on your network if you are away from home. Then the cloud can be for paying for redundancy such as offsite storage for the video, thus extremely low bandwidth usage, and if the servers die, the product will still be functional.
Overall the issue is companies using cloud even when it is not needed, and would actually provide a better experience to just allow direct access to the device.