To be honest, the cloud based nature of Smartthings really doesn’t bother me for use in a security app. It is more security than I have now, and it allows me to administer it completely. The odds of a a smartthings server going down coinciding with a break-in while not impossible…are odds I’m okay with. Besides, I don’t see why alerts couldn’t be setup to notify you if communications with the cloud has been lost. Then you can exercise your American right to huddle into the nearest corner with your Glock until the system comes back online.
However, I think it would be a mistake for Smartthings to advertise it as a security appliance. It’s not, and they’re not a security company. they shouldn’t accept that kind of liability without lot of thought first.
Besides, just because systems like micasaverse run locally doesn’t mean they are free from failure. Hubs die, just like web servers go down, or internet connections fail. You will never be able to cover all your bases with any security system. At best they simply help against a stupid criminal. Also, have you ever tried to program a system running something like the micasa? It’s a nightmare.