I'm one of the Indigo developers and we have a rather large number of users who find INSTEON quite reliable (myself included). We have users with pretty large installations (200+ devices) who have very infrequent issues. Usually, problems are because of powerline signal noise - as is common with all powerline carrier technologies. Diagnosing these problems can be somewhat challenging, but once you identify the source it's usually an easy fix.
If you haven't already, you should check out our forums - lots of people hang out there and you'll likely find a lot of good feedback.
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