A charitable soul might say that by keeping local software simple, the end-user's devices don't need to be updated as often, while the software running on the cloud systems can be continually enhanced. A cynic like myself would say they prefer to use the cloud:
1) because it's easier to gather serious data about the users for later use/sale
2) because by tying users to an online service, they have something valuable ("2 million active users!") to offer when the startup inevitably gets bought out
3) because you can get away with less efficient code if you're running on a big timeshared server vs. on a small battery-powered device
4) because "the cloud!" is still an effective marketing gimmick