Re: "Definite no no"
They are totally transparent about it. Every provider i've dealt with offers this as a "feature" of the latest and greatest.
True I've never bothered asking where the servers are, but they make no secrets of using off machine/cloud processing to deal with things.
There's no secrecy or assumptions, you're told it does this openly and from the off when getting quotes.
There are options available where this doesn't happen, but all of the enterprise AV stuff i've dealt with recently the "top" tier or package offers this as a feature. The product we use went from being "sophos" to "sophos cloud" and it's becoming the norm for providers.
You used to install an admin centre locally on a server, now you log into a web based system and control from there.