Earlier quoted context omitted.
Continuity data sync happens via iCloud. From the developer docs: "Handoff passes only enough information between the devices to describe the activity itself, while larger-scale data synchronization is handled through iCloud." Can't say for sure whether a p2p wifi connection would really be an good substitute but I'm skeptical and I bet Apple's thought it through. I know AirDrop works that way but it seems to take a…
Yes, I am aware that that is how they chose to implement it. It was not necessary to do it that way and the exact same user experience could be achieved without the data leaving the room. Continuity only needs to work within bluetooth (and therefore wifi) range. If Continuity didn't require bluetooth (e.g. for picking up a document on your mac that was started on your phone left in the car in the parking garage) then…
But you ignored what I noted about the performance of setting up p2p wifi vs. iCloud. Given that Apple does implement p2p wifi for AirDrop, it lends support to the theory that they had good reason to pass on it for Continuity.