According to its current privacy policy, with an account, Hue gets access to the configuration of your system to provide the right software updates to the devices. It can only use your data for marketing or share it with third parties if you provide additional consent.
However, in a change to the current policy, Yianni says Hue will not collect usage information from users without additional optional consent. “So, we do not require users share anything about how they use our products,” he says.
“Previously creating an account was consent for usage data processing that we are in the process of decoupling and will be decoupled before accounts become essential — that makes sure it’s possible to create an account without sharing usage data,” says Yianni. However, if you choose to use the cloud services for things like out-of-home connectivity, you will need an account, and Hue will process your data, he says.
If this change to the privacy policy does happen, Home Assistant’s Schoutsen agrees that it would make the requirement for an account more palatable. “But it all depends on the exact changes,” he says.
So you have probably figured it out by now but on the off chance that someone else is reading this and wonders about the bulbs not fading but instantly changing, you can set the transition speed (At least if you are using zigbee2mqtt, I am brand new at this so I haven't tried zha). It would be found in "Settings (Specific)" for each bulb. I set my bulbs to 0.25 seconds transitions and they fade very nicely! Also thank you very much for getting me started with HA! It's very neat. It's a liiiiitle jank. But it's very cool and I'm happy to not be forced into letting some other company have control over who uses my lights and who doesn't.
Ah, excellent! Thanks for that, I'll definitely see if I can do it under ZHA.
And no problem, glad you got off the hub!