I have upgraded to the V2 and most if not all of my problems with messages not reaching cloud for motion and what not (alarms triggers, …) have been resolved thus far. As well as, the problem of schedules and poll commands that stop running. Note I use “Pollster” for those operations, but it has not had to restart (as normally would every couple days).
I might have spoke to soon, time will tell. But for as many negatives as I said about V1 and cloud response. I wanted to say thanks.
Only smart light smartapps run locally. I still do have schedule problem with community smartapps. Of course I am pretty happy with hub 2 as well. Smart light been working everyday since I got it. Outside lighting is a big thing for my wife and so far she’s happy. Happy wife happy life I heard.
I did not realize until now not everything ran local… Sad and disappointing from the expectations of it. However, if I continue to not have issues (as many) I should not care, let ST use their hardware. Though I not have fast internet I have load balancer with two internet sources, I should be able to stay online if burglar tries to get me. 
“So far” is the key word that goes with “happy wife happy life”. LOL
You can see which of your SmartApps are running locally from:
https://graph.api.smartthings.com/localInstalledSmartApp/list