> Taking badges out of the cloud reduces points of failure by several orders of magnitude.

I'm not convinced that's true, or at least certainly not an order of magnitude. Wouldn't a badge system hosted on-prem also need a user management system (database), a hosted management interface, have a dependency on the LAN, and need most of the same hardware? Such a system would also need to be running on a local server(s), which introduces points of failure around power continuity/surges, physical security, ongoing maintenance, etc.