Re: why did it need the cloud
You don't need an internet connection to use Harmony Hubs (any longer - there was a firmware fix just over a year ago). However you do need an internet connection to programme the recent models. Also when mine loses its WiFi connection that pisses it off for a minute until it recovers.
There are some advantages to having a profile online. If you get a new remote you can download the profile in a few seconds. Their support staff can also fix any issues you have (and to be fair respond pretty quickly). You could do the same thing by allowing you to save the profile as a file but that puts the onus on the customer to remember where they put the profile. At least with this method you just have to log on to your Logitech account and there it is.
I've had such an account since getting my first remote in 2008 and despite only needing to log on a dozen times over the years it's always been there. I have my concerns about Logitech but so far they have never actually let me down.