In the long run, I think that's the right location for things like IoT devices: there's no reason for my thermostat to dial back to the cloud when it can just connect to my central computing unit in the closet, exactly like it connects to the central heating and air conditioning units in the closet. Normal people don't mess with HVAC, but they can if they want to (and it's remarkably simple!); likewise I don't imagine normal people would mess with their home system, but they'd be able to if they wished.