The WebSpeech API Enables Voice Recognition and Speech Synthesis in the Browser
badassjs.com
badassjs.com
Likely 2 reasons:
1. Local software would be easier to reverse engineer.
2. Local software would be more difficult to update with new algorithms.
Possible issues of tuning for one language vs multiple languages in local software might be a bear too.
I wonder how Mozilla would implement this: provide basic recognition and let users choose a third party service to provide recognition, or perhaps strike a deal with a third party themselves? Or am I underestimating their ability to provide services like this?