I can't speak to the Insteon but I have Z-Wave devices throughout the house. I chose Z-Wave for the same reason you're interested: in theory they have an attempt at security. I've read about some possible shortcomings, but it frankly seemed like the best option available.
Initial pairing can be awkward because they require that they're within about a meter, maybe two, in order to set up the relationship.
After that, devices that are hard wired typically create a range extending mesh network which has allowed me to get communication with devices all the way across the house and upstairs even though my hub is way too far away for direct communication.
I've got outlets, a thermostat, light switches, temp/humidity sensors, and motion detectors that are all Z-Wave based and they have worked flawlessly for going on a year.
EDIT: With all the IoT horror stories on HN lately- I wanted to add that I purposely chose a set of devices that do not directly connect to the Internet for all the reasons we are hearing about. Phoning home, hidden unsecured networks, etc.
With Z-Wave (and ZigBee, and others) you don't need the Internet at all. If I removed my home hub right now everything would work (except for some macros) as if they were regular ol' non-connected devices. This was the absolute most important thing to me and why I chose a $60 Z-Wave thermostat that looks like an old $20 programmable one instead of Nest or some of the others.