. . . The problem with Insteon has always been more with marketing decisions than with the protocol itself.
What's a poor giant corporation to do? This is my take on the gestation period of Insteon:
Year 2004:
UPB and ZWave are not only on the market, but are rapidly gaining acceptance, and eroding the X10 market. ACT had already jumped from X10 onto the ZWave bandwagon. Also Zigbee is on the horizon (very far on the horizon, in hindsight). SmartHome's marketing is caught snoozing.
Realizing that they needed to quickly move from X10, not wishing to pay license fees for the other technologies or being a minor player, and feeling like the 600-pound gorilla, they decide that they should do their own protocol, and leverage their X10 muscle to make sure it was accepted.
But ZWave and UPB were building momentum, and SmartHome had to move into the market fast! They started development years behind, the last horse out of the gate (both UPB and ZWave started development in the 1990s). They needed to make up for the lost time, and decided that it was more important to get products out of the door than it was to have those products solid.
They copied the X10 paradigm, with both PLC and RF components. They threw together a protocol, with the mantra that simple was better (because it was quicker for them to develop). But overly simple can become overly complicated. Some blunders were made in the original specification. Some of the technical assumptions were not correct. But the protocol's survival depended on getting products into the field.