SmartThings is working on local control and I believe that is what they mean by the "local app engine." I read a discussion thread on one of their forums discussing possible features for v2.0 and a member of their staff said local control is something they intend to have in v2.0. I'll see if I can find the thread and will link it here.
EDIT:
Here it is.
For my part, I'm having a REALLY hard time understanding why all these companies seem to think local control wasn't necessary to begin with. It sounds to me like business types obsessed with the cloud buzzword got involved or programmers who maybe don't have major infrastructure experience didn't think through all the implications. I can tell you that if I had designed one of these systems, local control would've been the PRIMARY consideration, with cloud integration secondary. I understand that unless you want to make the solution REALLY complicated, you do have to have some degree of cloud integration in order to be able to control your stuff from a phone anywhere in the world; however, I would guess that the majority of uses of these products would be while one is INSIDE the house and therefore, you would presumably have access to the hub via the local network. Also, I think it is a major mistake for these manufacturers NOT to put a hardwired Ethernet port on the hubs. Wink highlights the potential for interference from wireless sources but yet, seems oblivious to the fact that some of that could be resolved with a physical Ethernet port.
I also would've had web front ends for the hub accessible from any browser AND some advanced options available, but I'm a geek and understand Joe User may not need the advanced options (thought I think a web dashboard is something most would want). I can't speak for other companies because I don't have experience with their products, but I can say that I believe Wink has caused more problems than it has solved by dumbing the solution down so much. Also, from my limited experience of emailing once for support, I was not impressed at all.
What I try to do every year is one major tech project for the house. This year, I wanted to do home automation. I'm hoping that by the summer, everything announced at CES will be out, we'll have some reviews, and hopefully I'll have a direction to go in. I just can't see Wink being that long-term direction.