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So this requires an always-on "hot mic" app. Does anyone see any issues with that?

Some Android phones (the Moto X, off the top of my head) already have an always-on microphone - for better or for worse.

Only if you enable and set up that feature. My Moto X doesn't.

not in the online case.

sorry, to clarify: the app does not need to always be recording in the online case.