>Well whats the other alternatives? Sending images to devices on a shared network, or having a server in your house/phone which receives the images.

Encrypt the image with a key that both your iphone and the device share, but the servers do not.

It still leaks privacy-sensitive information (what time somebody appeared at your front door), but it's better than the alternative, and perfectly feasible for a company that cares about the privacy of its users.