I think you're not seeing my point. This is in the hardware. It's simple to have a setting that defaults to connecting to the company's server and then have that setting allow for changing the sever target. Why do I need to build firmware to do that?

And, no, it's not acceptable to require forking, regardless of the ease of merging. It still means you won't get critical security updates without manual intervention.

And finally, it's requiring trust. If the company decides to change the license, you are out of luck. And again, the documentation and policies are already lacking, like what happens if your API key is compromised? Do you need to pay for a new one to be generated. These are on your local device.

And no, home assistant doesn't require self-hosting. It requires hardware to put the central system on, but doesn't require an external server for web services. This device is putting the lock inside the hardware you are purchasing. If I purchase hardware, I want it to be mine. Not subject to a license of what you can put on it, even if that license is initially very open. It's my hardware.

Home assistant does sell hardware that is totally open with no license on what software you can put on it. Most people put it on their own hardware. This is totally separate from the cloud service they offer which is for interacting with the sever over the internet and some other stuff. That cloud functionality is totally optional and you aren't required to modify the home assistant code base in order to NOT use the cloud. So it's not at all equivalent.