Except that SmartThings seems to have some problem. People are having performance problems when they have more than 20 Edge drivers installed. It's become a common question being asked of people reporting problems.
Yeah read through the forums.. sounds like some serious pain but they are working it out. ST is lucky to have the great community they still do.
My take is if you take the plunge and convert everything (and ignore/put aside the not working bits) you should be okay.
I'm still confused as to how the system interacts with the ST cloud etc.. someone posted a chart but it kinda makes my head spin 
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That part right there is unacceptable.... If it worked before on the existing platform, it should 100% work on the "upgraded" platform.
Edited to add - I realize you are not defending that stance and probably meant it more like... "Yeah.... it's sorta ok as long as you ignore what doesn't work"
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% - the whole thing seems like a big mess. For folks who are stuck with a large system they just have deal with it until Samsung does something.. or you know, change to HE and local freedom.. 
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To sum up that chart - if the device connects directly to the hub it can be processed locally. Almost
everything else routes through the SmartThings cloud, possibly bi-directionally, and the Cloud will also send the status updates to the hub.
The center really is the Cloud, not the hub. The Hub is just a means to connect to the local devices that are not internet connected. Major new difference is the code to run those devices can run locally as Edge drivers.
I think that makes sense?
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It makes it more understandable. However, it still makes no sense. based on that diagram, you have no local control from your phone if the internet or cloud is down..... unlike a system that does make sense which would allow that local control over LAN. I would think it might be important to be able to shut down your hub properly to prevent database corruption......
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I had a V1 hub and would have had to use it as a paperweight. If I hadn’t already left ST for Hubitat and tossed it well before they bricked the V1 hubs.
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That is exactly when I left as well
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Automations still appear to be cloud connected? I wonder if there is a spot for local routines/automations thats part of the "hub-connected" bit but dunno - seems weird.
Anyway this is far too much thinking time spent on something I'm likely not ever going back to.. I do feel for the more technically inclined folks still using the hub though. Wish them luck with their continued support of that community - they are still doing amazing work helping people. 
I bailed shortly after the Samsung takeover having had one too many cloud outages and no real progress towards fully local automation as promised.
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Routines that control all Edge (lua) driver based devices run local without needing the cloud, although there are some caveats to this:
- If a routine has any cloud-to-cloud integrations or Groovy cloud DTH based devices in it, it won't run locally.
- If a routine uses devices across hubs in the same location (even if they are on the same local subnet) it won't run locally.
- There are a few odd conditionals that still require the cloud but those are few and far between now. I'm guessing those will all be resolved at some point.
- If a routine runs a scene, it won't run locally (yet).
- Maybe a few other variables.
The routine view has a "house" icon next to any routines that will run 100% local to clue people into what will run where.
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Okay thanks for that update... I figured there had to be local routines. Bummer on the scenes and the inter hub device routines though. Hopefully Samsung can make good on those in a timely fashion.
After having used HE over the years this non-local stuff is a bit appalling.
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Is this another case where we say "welcome to the Community..."... Maybe I am a little late to the party.... Who needs a drink.... 
I know I do....
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I jumped ship from ST nearly 3 years ago when the grumblings of groovy and webcore goiing away first surfaced. I'm honestly suprised Smartthings is still around.
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But so many comments on the ST community are that non-local stuff is alright since most of the SmartThings users don't even own a hub...
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Yeah was reading that.. good for them. Hope the ST Cloud keeps running as advertised.
Next to the heart-shaped "Like" icon, Discourse really needs one of these:
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Here you go (and I think it would be useful, independent of the current thread):
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Honestly in the last 12-18 months, I've noticed zero outage issues with the ST cloud. Sure, its had problems that I received notifications on, but all our automations seemed to be unaffected.
That being said, I don't use webcore or other big cloud dependent rules, and I don't use motion lighting where I would be more likely to notice outages as they were happening. People that do I could see being extremely frustrated by any outage, no matter how short or infrequent.
For our use case, our ST experience has been solid and very high WAF.
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At our house WAF can take a downturn rather quickly if something stops working or periodically fails. 
For my situation I'm a lot happier / less stressed to know that from the outset my core setup including a companion server running Node-RED is all local.
The other concern is long term - If Samsung feels they aren't monetizing this enough they could easily change directions like they did here. I really don't like being beholden to a company like that...
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