"Why pick on Oz?"
Try reading the whole article - the next paragraph says:
"Vulture South doesn't follow police scandals in other countries, but we wouldn't be surprised if such patterns were repeated elsewhere."
"I suspect given the size of the libraries used to check the multiple languages the cloud is the only way to get advanced voice recognition working."
Computers have been doing speech recognition even back in the days when DOS was widespread. My Nokia E70 had rudimentary speech commands (and understood at least 2 languages) builtin. The processing power/ram/storage on a modern "smart" TV is more than adequate for speech recognition.
If Samsung cared even a little bit about privacy they could have implemented a 2-tier system, simple commands like "volume up/down", "channel up/down", "mute" etc could be processed onboard without a f*cking stupid round trip to the internet. In fact the "simple commands" would cover all the standard TV functions (at least - ie it could also cover some "smart" TV functions like display the local weather when you say "weather" (assuming you have already programmed your location into the thing)). Only more sophisticated "natural language" commands would warrant a trip to the internet. The user can then choose to only use simple commands, and never have their voice data sent over the internet.