The point is, when that thing is still running, what prevents the Internet service you're using from switchting it into recording state remotely? Just because it doesn't transmit data "right now", doesn't mean it can't be made to, remotely.
However, that's exactly the reason why I wouldn't use anything "cloud" in the first place. Give me a cam that can upload to my server. I don't care if it's really off or not, if I can firewall it to only talk to my services.
As such, this "problem" is only a problem because it highlights the bad decision someone made in the first place, namely using "cloud-based" bullshit.