I use alarmed to switch my phone offline at night and back online again in the morning.
This was working fine, but it recently stopped working properly - when I look at the screen, there is a dialog on there that asks if I want to switch out of offline mode.

Did anything change to the latitude daemon that could cause it to do this (ie, tries to foce online rather than just check if the internet is available)?

I remember that this worked some time before, so this behavior came in a recent update of the Latitude daemon.