Where we differ is in where the data will be stored. Eve, as a faithful follower of the Liberty Alliance spec, expects an "in-the-net" service to do everything
This shows that Dave "suffers from" the common misconception (perhaps caused by some of Liberty's marketing materials) that the protocols have some "in-the-net" concept baked into them. This isn't the case. In fact, in a large part due to the participation of folks like Nokia, Gemplus and others, Liberty's protocols were designed to be location independent. Any entity defined by Liberty can live "in-the-net". "in-the-handset", "in-the-pc", or pretty much anywhere.
What Liberty has defined is the protocols used by the entity, regardless of where it lives, to provide the necessary services for the user. This includes the IdP, the Discovery Service, the People Service, etc.
In fact, in some of the work that is currently in progress in the Advanced Client Technologies, we're working on enabling that local, "in-the-phone" service to optionally make use of "in-the-net" components to form a hybrid implementation to best meet the user's connectivity needs.