HomeAssistant's main strength is in tying otherwise incompatible devices together. Local first is not unique though - HomeKit is local, Matter is local, I don't know much about the Alexa/Google setups but I believe they can be controlled locally too.
Don't get me wrong, Home Assistant is an excellent bit of kit with lots of standardisation and automation. But this article is pushing the wrong part of its strengths - local-first isn't unique. Pick the right ecosystem and it's all local-first anyway.
I have many different smart vendors in my home - Google (originally Nest), Philips, Meross, Aqara, Eve, Ikea, LightwaveRF, Shelly, Eufy, Switchbot...none of them require the internet. All of them can work locally. All of them work in the same ecosystem. Then I have oddities which I use
HomeBridge for to bridge the gap - Roomba (older, non-Matter, Worx Landroid (robot lawnmower), Dyson Hot'n'Cool thingy, Logitech Harmony...even plugins for Synology which show the NAS's temperature and allow shutdown. Through the use of HomeBridge, I can draw them into the same ecosystem too. None of this requires the internet.
The meme is completely overblown and quite often you can tell by people that don't actually use this kind of tech. Obviously if I want to control this kit from outside the home then I need an internet connection, and if I want to update any of the kit then I need to download the updates from the internet for that too, but operation from within the house? Just a HomeKit/Matter hub, that's all.