I mean, it kind of makes some sense. Part of what they're doing is checking your location, speed, bearing, etc., and--IIRC--using cell signals for some of that. That's bandwidth, and someone has to pay for it, even if it's not very much. OTOH, Helite makes a vest that uses a tether, and that's going to work well enough in most cases.
I think that there might be some that have options to pay for it all up-front instead of having a subscription, but I'm not positive; I just rely on leather and Knox inserts.
I don't have any direct info on how it works, but I would have assumed it could be done completely offline with some sort of accelerometers. But I am a Lay Person so... ¯\_(ツ)_/¯
Accelerometers don't work that great with motorcycles; when you go into a hard turn, the accelerometer still thinks that you're straight up, due to centripedal force. You'd actually need gyroscopes. (...Which is why adaptive headlights for motorcycles end up being so expensive, and why only BMW specs them, and only on one or two touring models.)