I have a compromise setup
I tried to get a little of the best of both worlds. My current home automation is all Z-Wave, run by an ISY994 controller. That controller needs no internet to function, and I can control everything locally. It has a simple browser-based interface (on its private IP) that can turn devices on or off or run any programs I might have created to take more complex actions.
And, though I DO have my own OpenVPN appliance to connect remotely with, so could use that to make changes remotely, I still decided to try out the MobiLinc HD app, which is capable of being configured to control the ISY remotely, without a VPN tunnel. It's also a much more convenient app to use, even when in the home, to control devices, versus the web interface. So I pay a subscription for MobiLinc for the convenience and user experience, but if that company should go out of business or do anything horrid enough for me to want to stop using them, it doesn't brick my underlying hardware or my ability to control it. The ISY controller does not automatically install updates either, I have to choose to do it.
Granted, the ISY units are not nearly as user-friendly as your typical consumer-focused devices (and have a horrible-looking, not the most intuitive, *Java*-based admin console for adding devices or programming scenes), but at least I control it and don't have to worry about a change in some cloud company's terms, goals, or revenue model forcing me to re-buy new equipment.
Similarly, my security cameras (and wireless APs, for that matter) at the house are Ubiquiti's UniFi products. Cheap for what you get (I've used their APs, especially, at many companies where paying the much higher initial cost, plus the ongoing cost, of something like Meraki just wasn't desirable), managed locally with free controller and NVR software, and they've come up with a relatively clever way of helping you make that software available remotely without having to depend on VPNs and such (though I don't use that--mine is only accessible via VPN).
Of course, I'm a long-term IT infrastructure type, who also dabbled in installing security cameras for a few years, so I'm certainly not the typical consumer that just needs to plug it in and have it work. For them, these solutions aren't as convenient, nor really marketing towards them, so I wouldn't expect much uptake from that crowd. Still, for anyone who DOES care, there are options out there to avoid being at the mercy of the whims of a cloud provider.