Disclaimer: I don't know anything and I'm wildly guessing here. That said: I'm not so convinced the local server would not fit the UE architecture. First of all, it doesn't make sense to do all this new Smart Radio stuff and infrastructure just to re-brand the Radio so I'd think there has to be a broader plan. Second: since in the UE architecture the server doesn't have to control the device, it becomes a less critical component and since you don't have to switch servers, it would be much easier to use a tiny server like the Touch has it. When they originally developed the Touch I was convinced (and wrote a dozen change requests or so to that extent) that a more source-independent architecture as the UE Smart Radio has it would be a necessary precondition to make the embedded server work and I still believe I was right, although I would not do it like the UE platform does.
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