I'm not the best with all the computer/wifi/internet troubleshooting and I totally missed the usb to wifi switching on the PC software. I have been trying different scenarios and this is what I've found, please correct me on anything I have wrong or have missed.
Wifi Utility (1702.1)
Usb cable to PC for updates, wifi configuration, registration.
Wifi to PC for diagnostics.
Must have active internet connection.
PC Software (1707.2)
usb to PC (tools/setup switching) for diagnostics, don't need internet.
Wifi to PC (tools/setup switching) for diagnostics, need active internet connection. (at least I can't make it work without)
If a user had a shop with no internet ( as one poster claimed) then he would need usb, and only the PC software with less then full function would be available.
You said there are more functions with the internet, what are they, without doing a lot of comparing I hope someone that already knows can enlighten.
I haven't included the smartphone app since I am pretty sure I have that figured out.