that's not how I read the (scant) available information, but I agree with you. I got a couple of free plugins authorized through iLok's cloud, which means you have to be online 100% of the time if you want to use them, and that just ruins it for me. It's stupid.
However, the BFD guy, Amberience, said that the next version will address "Expansion packs not being available when offline." Why would they address such a thing if they intended BFD not to run offline?