Yeah. They did exactly that
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That's where it does the voice processing. The only processing it does on-device is the wake word and taking commands. Actually figuring out what you mean is done in The Cloud. Doing that on-device would not only make the devices significantly more expensive, but they would also rapidly become outdated.
The rest of your complaints are valid and I've experienced them all myself to boot.
You can get a Pi that can do voice to text and NLP, maybe it can even do it with reasonable speed.
You can get a Pi that is $35.
But you won't get a Pi that is $35 which can do voice to text and NLP with reasonable speed.
When you say "Android devices" you're talking about devices that are like, 5-10x the price of the nest mini. Of course they're capable.