Perhaps I'm not totally clear on how this particular device works, but it doesn't seem like it has no ability to connect to the Internet.

Honestly, I'd say privacy is just as much about economics as it is technical architecture. If you've taken outside funding from institutional venture capitalists, it's only a matter of time before you're asked to make even more money™, and you may issue a quiet, boring change to your terms and conditions that you hope no one will read... Suddenly, you're removing mentions of your company's old "Don't Be Evil" slogan.