I think most people's perception of what makes the most sense, involves someone else dealing with as much of the hassle as possible.

Which is why online enabled devices are popular and why companies cater for them.

If they could sell large numbers of offline versions at a markup, they would.

Then have it as selling point.

"Here is a box, we just run a container on it with your stuff, you can configure it in cloud as usual but all the stuff is run locally. Pay us monthly for convenience of setting it from cloud and software updates but don't worry, if we get out of business It Will Still Just Work".