I think you left off the biggest reasons, commercial:

* No piracy. Can't crack code you aren't running.

* Immediate installs/updates. No need to tell people to ever update stuff, or to install your program in the first place.

* You can charge subscriptions. It's much easier to justify a subscription when you pay for server costs, even though the customer would be happier just running your application locally.

* Easier deployment. You can handle complex integrations on the server, without the customer having to open ports or whatever.