This really highlights the need for always-on internet and fallbacks to a cell network if the IoT-connect fantasy world they keep selling is ever going to be a reality.

If your IoT device depends on the internet for functionality it really should be able to connect to cell networks, not just wifi. The only problem is the security risks with that, but it doesn't expand the attack surface that much more than having a cloud-connected device as it is.

Some proposals for future 'smart cities' is having CAT-6 LTE (which can be as fast as most home broadband connections) broadcasting everywhere and having all the devices connected to that, so you don't have to depend on your home wifi staying on or being in range.