This has been explained quite a large number of times.  Only Stardock BETAS require internet connection, so some files can be updated without always requiring a big patch.  Full releases never require authentication (except if you are playing something that requires Steam, which FE definitely won't).

Very cool.  I needed to hear that.  As you can tell I am new to these forums despite having played Stardock games before.

A better search function on theseforums would solve that..or some moderation to sticky previously answered questions.

In this case I think you are wrong. No way does FE need an always on connection just to update files. Are they really making changes and just not letting anyone know? Thats a poor way to test. And as far as I can tell my game never auto downloads the actual beta update, which would save me  some time. Ive never seen my game update itself in any fashion so I'm going with always on connection is there to collect and transmit user behavior/data and provide DRM for an unreleased product. Which I imagine is useful in a Beta, just not very sexy (and in fact frightning to some) to explain to people. So we get this silliness about autoupdate functions.

I wanted to test the product which I paid for the privilage to do and I couldnt. Opt out option for always on internet pls.

One reason for the connection is that all crashes are relayed to them automatically. Which is a pretty good feature for a beta, I think. I know I wouldn't want to write an email / forums post with attachments every time a beta product crashes on me.

That alone is worth the connection in my eyes.