I'm curious, why do people buy insteon products?
Yeah, they are a little cheaper. But there are clearly more-reliable competing products in UPB and Zwave/Zigbee(which has the added benefit of not being powerline). Insteon is a powerline technology, subject to all the annoyances, and it seems a pretty bad one too. On a typical 20-load install I would save $500 over using high-quality UPB or Zwave. Lighting automation is something you install to last for years, if not decades, kind of like appliances. Why skimp to save a bit up front? Just curious why people do it. Why not X10 if you want t to save money?
I'll bite! I went with Insteon because the cost savings were significant with my 70+ device installation. I also like the flexibility that the devices offer, where everything links with everything, double-tap on/off, the look and customization of the keypads, etc. The variety of devices out there now (IR interfaces, motion sensors, I/O controllers, thermostats) opens up a variety of options, even if you don't have or want a central controller.
At the time of my initial install I checked out UPB and Zwave which I did not like for various reasons (I won't bore you).
Though I've had my share of problems in the 2+ years I've had Insteon, not nearly as much as some people have experienced - so I'm relatively happy with Insteon in my home. I've only had a few devices go bad, but have had to replace some devices due to firmware issues, etc. Powerline problems can be an annoyance, but I see my share of RF problems every day - so I'm not necessarily a fan of RF over powerline in every circumstance. Though I am in the middle of troubleshooting a powerline issue with one of my circuits, so I reserve the right to change my opinion.
I think the kicker is that when Insteon works well for you, it works great. Device response is "instant" (check out what people can do with Xpendable's LightShowMaster), the devices are good looking in my opinion, and the versatility of the protocol pretty much let's you do whatever you want (especially if you get a central controller like the ISY or PC-based PowerHome).
The problem is that Smarthome has had some reliability issues with hardware, and have released a lot of product with firmware problems that (in my opinion) should have been caught during QC testing. It's annoying to replace a plug-in module due to a firmware bug that should have been caught at the manufactuer, but it's unnacceptable to replace a wired-in module due to the same. The lack of upgradeable firmware makes the issue worse - it might not be so bad to have a few buggy firmware releases if users could flash back to an older firmware, or wait for a newer firmware, but as of right now devices need to be yanked out of the wall and replaced if you find a firmware bug that affects you.
I deal with buggy firmware every day on various types of devices in the IT world. But on a non-upgradeable light switch being installed in your wall, the hardware and firmware needs to be tested, tested, and tested (and tested) so it's bulletproof.
The rainbow always seems to be "just around the corner", because Smarthome WILL fix this issue and their customer support, in my experience, is great - they've always replaced defective devices for me without issue, and even pay return shipping. The problem is that another issue (hardware or firmware) always seem to creep up again in a future hardware/firmware revision and makes you wonder what experience you might have with the next batch.
I haven't personally experienced any of the newer firmware issues being reported, but I feel the pain of those who are experiencing them.