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.
Unrelated, but I had a similar issue when trying to find a "dumb" TV: most of the high-end screens come attached to crappy software that you know will stop receiving updates 2 years down the road, and the cheap ones were super low quality. I got lucky in the end, but it took a few weeks of research to find the right balance.
The truth is that most of those come with the remote access features disabled, and when they are carelessly enabled by someone who doesn't know what they are doing this will happen.
But like I said, many of those systems out of the box only broadcast to the DVR locally.
EDIT: Since I see you're a Nest/Dropcam person, I'm a Honeywell guy. Haha. We can still be friends. :-)