From what I've seen there is a) fully cloud-enabled stuff, b) cheap china crap with security holes and c) "enterprise" solutions with prices and hardware demands to match. No-one makes something with the features of b), proper security and the price+polish of a).
There is quite a few "IoT" devices I want to like, but they come with (to me) unacceptable limitations.
Just to make it clear, I understand that this has similar development effort and Nest probably couldn't have done both at the same time. I just wish there were a few companies outside of the as-cheapest-as-possible spectrum that made "boring" consumer devices.