I do understand. One of your complaints is "Mistake three - It doesn't work if your phone is not connected to the internet."
That is not a mistake. It is a direct result of the fundamental insight that enabled whatsapp to become what is is - being stateless. Your first two complaints are technical, but the third is a business decision that optimizes their product to fit the needs of the market.
This is a by the by, but surveillence in the context of business requirements means something different. For example, financial companies need to surveil their employee's messages for illegal activity.