It's not just a home automation system though. People setup HA for a lot of reasons, but one of them is that they don't want other people/companies in control of what goes on in their home, spying on them, etc. The sort of people who go to the trouble to set up a server, deal with all of the integration issues, etc so that they can get something that they have control over of.
Anyhow that sort of person might not take kindly to having a hash of their password sent to some random web server without being asked first.
Anyhow that sort of person might not take kindly to having a hash of their password sent to some random web server without being asked first.