Cofounder/CEO here, just finished with Makercon and catching up.
The Glowforge does require a cloud connection to operate. We use cloud vs. local a host of reasons including the motion planner, alignment, image recognition, and faster feature development.
But based on the excellent point made here that nobody wants a paperweight if we fall off the globe, we decided to make a change. We're going to do a GPL release of the firmware so people can do whatever they want, including porting offline functionality. You buy it, it's yours, you should get to do what you want with it.
http://glowforge.com/gpl-licensed-open-source-firmware-for-g...
Thanks for the great feedback.