That really looks sweet! But glancing over the FAQ, it's not clear to me if it doesn't do IMAP&SMTP with the big players, or if it doesn't feature IMAP&SMTP at all?
N1 supports connecting to all the major email providers, as well as pretty much every obscure IMAP server run by your ISP! What's pointed out in the FAQ is just that it uses a cloud service component (also open source! http://github.com/nylas/sync-engine) that we developed first to make it easier to build clients.
When you say authentication, do you mean the cloud engine doesn't authenticate against your email providers, or that the desktop client doesn't authenticate against the cloud engine?