I don't think i tend towards excessive paranoia, but having a camera attached to the internet with a power switch which doesn't actually power it down seems a bit sketchy to me. Even if Nest/Google the corporation has fully honorable intentions the situation still seems liable to potential abuse.
Note its an off button in an app. In order for the user to be able to turn it back 'on' from an app the camera cannot power down. Personally I wouldn't use a cloud connected camera for a variety of reasons but this sounds as if its working exactly as one would expect.
Who said I'm a believer in Microsoft?
And lets be honest, for the past 10-years Apple's 'innovation' consists of recycling the ipod touch (hmm, add cellular, remove cellular but increase screen size).
"Necessity is the mother of invention" is a silly proverb. "Necessity is the mother of futile dodges" is much nearer the truth. -- Alfred North Whitehead