Completely agree. But devices should work without a connection to a cloud, even if that cloud was open source. In this case, I see no reason for performing logic in the cloud, except that it makes DRM easier: You can't copy code you don't have.

You can continue to use proprietary hardware that is no longer supported by the manufacturer, as long as it is self contained. I think that SaaS is an unfortunate misstep, and making hardware depend on SaaS is even worse.