Seems like a genuine customer problem. If you want to set up smart lights through your back yard, or a smart sensor at the edge of your driver, they might not have WiFi connectivity to the rest of your house.
Hence the Sidewalk metaphor - a mesh network allows the devices to hop access from one another.
There is also a pretty detailed Privacy/Security Whitepaper and it's important to point out this before any alarmist "Amazon is spying on you!" pearl clutching: https://m.media-amazon.com/images/G/01/sidewalk/final_privac...