IoT: Does everything need to be in the cloud?

On the Verge reports that Google remotely reset some customers Google OnHub routers:

Google has apologized to its Google Wifi and OnHub customers after it inadvertently reset a number of routers to their factory settings. Google blamed an issue with its Google Accounts engine for the problem, which forced OnHub owners offline in the middle of the US day, erasing their saved settings and forcing them to re-enter their network information.

This is why I have no interest in hosting these type of remote systems on my network.

The Cloudbleed┬ábug caused multiple password resets across all my devices and sessions. Doing it on a phone or a computer is relatively simple, but having to re-enter that on a SmartTV sucked. I can’t imagine how’d I do that for a fridge or something.

Tai