If I understand correctly, a police query to Flock makes inferences from the set of all municipality/HOA/BigBogStore flock cameras. Or at least the ginormous subset who haven't opted out of the default settings that make Flock appealing to police in the first place.

If your imagined competitor doesn't offer that feature, then how is it a competitor?

If your competitor does offer it, then why would it even matter whether ICE gets access to inferences derived from the cloud vs. some federation of local storage devices?