One of the benefits of a local first architecture is not just privacy but also longevity.

What happens if the company who owns the software in the cloud decides they don't want to operate it anymore?

Your data is fused to the app. But what if the app dies? It takes your data with it.

Investing in using a cloud service is a bet it will continue to be run.

Not a good bet necessarily in many cases, especially if it is new, or unprofitable, or not many people use it!

Either it will turn extractive and run for a long time (by screwing you over) or it will die relatively soon.