How do you handle false alarms? Say someone bumps to my bike and moves it, and then I get a message on my phone saying that someone is trying to steal my bike while it was just a false alarm?! Now if I am far way from my bike, the anxiety will kill me and I have to run and check it out to make sure it is safe. This will either get really annoying or completely desensitize the user to the theft notifications. Also, the bike thieves can abuse this feature to desensitize people against the alarm and notification features (like intentionally bumping into bikes to create false alarms). Have you ever thought about this at all?
Firstly, maybe the cable is part of the antennae, thus negating this issue?
Secondly, maybe there's a heartbeart, the absence of which triggers an alert?
Finally, in practical terms, this probably won't become a problem until all bikes have upgraded. To deter a thief you don't need perfect security: you just need better security than the next potential victim.
The hot-wire protection is a gimmick. I can use an alligator wire and attach each of the wire to the ends of the cable. This way when the cable is cut, the circuit remain closed and the alarm does not go off. Combine this aluminum foil wrapped around the lock to block the GPS and data signal, will make Lock8 totally useless.
The data connection might happen - in the US. My money says they won't be getting that $1.99 a month in Australia. Otherwise it's just another dumb lock.