Yea this Insteon debacle is a weird example to use to highlight problems with IoT systems.
They've been around way longer than most of the "modern" protocols. It was basically Insteon and Lutron in semi-affordable home lighting control space for years and years and years before cloud-controlled IoT and Alexa entered the picture.
I'm really wondering how this all came to pass... guessing they tried and failed to jump on the app/cloud bandwagon? Their new app was late to the game and in beta for, like, two years?