Well, this architecture is more flexible, and its more convenient. You can initiate a recorded call from any web interface, whether it be smartphone or desktop. And the recorded calls are immediately available online for sharing, editing, transcribing, etc.
We don't charge for storage, btw. The charge is because of the unavoidable per minute costs to the phone companies for access to POTS. We'd love to make it free.
I get where you're coming from, I really do. But you'd sell A LOT more apps by developing a beep free, automatic phone recording app that stores the calls locally.
For one, it's not a good idea (legally speaking) to have all of your phone calls automatically stored on someone else's server. Backup tapes could be subject to subpoena. Storing the phone calls on the phone provides the user much more flexibility.
Again, do what you want to do. I'm just telling you that the consumer wants the EXACT same function that was available two to three years ago on virtually every smartphone made (iphone excluded).