I'm halting my Insteon upgrade and will not purchase another Insteon product until I see how this gets resolved. I am also halting all Insteon development at this time. We'll have to see what happens.
Regarding that INSTEON SDK membership, I decided to stop trying to support the PLC (InHomefre) over a year ago and am waiting to hear about the 'rumored' PLC replacement
. I still have three PLCs that I would like to trade in for the mythical 'less buggy' reworked model. I do use a USB PLC to control my two existing X10 flood lights (those things have been working well for about ten years now - good for them!), other than that I have been Z-Wave/Homeseer for about 2.5 years.
This whole INSTEON I1/I2 thing (my own hallucination ) is a result of the original INSTEON devices having a design error that prevented them from being fully compliant with the published protocol (extended messaging was broken). Now you have installations with many I1 devices that do not repeat the 'newer' I2 signals because the I2 signals appear as noise to the older devices. Funny, the I2 commands seem less reliable, hum...? I am reminded of a grade school saying that I heard once; "Oh what a tangled web we weave, when first we practice to deceive".
The whole INSTEON protocol, as currently implemented, is way, way too complicated. A single light switch has to be a rather complicated signal processor (mini computer). That is where the Firmware issues come in. Someone who is into the 'probability of failure' aspect of electronic devices could explain that last part better. With Z-Wave, all the switch has to do is listen for its address. I cannot speak for the other protocols. The INSTEON protocol CAN work, but it needs much MORE engineering support and much, much LESS marketing support.
My personal good news, is that I have been using the first generation Vizia-RF devices since they became available (about two years ago). I have had zero, repeat, zero, hardware failures to date. That alone, to me, justifies the premium price. I guess you could call me one of the 'early adopter' INSTEON, walking wounded (about $600.00 wounded). My 'early adopter' experience with the Vizia-RF devices was much more enjoyable, dang! They all work right out of the box!
I could go on with this but I would not be adding much to the OP's statement/question, other than I agree.
Ken
edit corrected spelling