We do still plan on providing a web interface to manage the Iro.
This particular shortfall by Rachio falls on my shoulders because I was the one originally building the web version and put the content on our website that it would be completed by now. My role has shifted quite a bit over the last few months and unfortunately I have not been able to contribute much to that project since.
I didn't want to take it down at this point because it was already promised and as a company we own our shortfalls. We are currently hiring out for the development work to finish it up. We hope to have it released in the July timeframe. I apologize for the inconvenience it has caused you.
The webserver will always run in the cloud, never on the device. Yes, the Iro will require internet access and rachio servers to exist.
As a company, one or our goals is to not go out of business, but you never know. Given that we have a large customer base, it's unlikely that the lights would ever just go off. If we ran into trouble, we may be forced to stop creating new devices and features, but the device and features currently online could be maintained (possibly by someone else) for a nominal amount, therefore not creating a brick.