It's a device that doesn't need to be cloud connected... that's cloud connected. Smart home stuff needs a local network to the home, that's it. A server going down in Virginia shouldn't mean a person can't run their vacuum robot.
It would be easy to do that, but nobody wants to. Without cloud there is no recurring revenue upsell opportunity and no side revenue from selling user data to advertisers.
Imagine if lightbulb sockets were proprietary! It'd be madness. The current state of things with smart home stuff is worse than that, because at least there's a decent chance proprietary-lightbulb-socket world would have plentiful adapters and 3rd-party manufacturers for most or all types. The odds of a company stepping in to provide a software-side fix for Insteon dying, are slim.