| | Re: Would you use online accounting solution?
I think the question(s) you pose in your original posting are sensible enough, as are the observations you make (quite apart from whether or not they are correct - which I don't actually know).
Having recently made a purchasing decision with respect to an accounting application, I considered both online (Quickbooks Online, specifically) and software based applications. In the end, I went with the software. Ultimately, I just felt more comfortable having the application actually installed on my hardware, where I could configure it and be certain that it would be available as and when I wanted (and not dependent on the availability and functionality of servers, internet etc). I think, too, with this kind of data, one wants to be assured of privacy and I felt that installed software delivered in this respect (not to say that online versions are any less in this regard - it was just a feeling I had). I also preferred the licensing arrangement that came with the purchase of software, which I could use for as long as I wanted, with no obligation to upgrade (with the exception of tax tables etc). Automatic upgrades are fine, so long as one actually thinks they add to the product and can be used without further training etc.
I might ultimately move to an online accounting solution, and this might require a shift in my thinking. But, for now at least, having the program installed on my hardware is preferable for me.
Hope this gives some insight.