As with most things in computing, using local models has tradeoffs. You’ve mentioned some of the positives, but some of the challenges include having to download multi-GB files, requiring better machines, and being harder to set up. None of that is insurmountable, but it is an extra hurdle that can confuse most users. There are so many different knobs and dials, even when using one specific service, that an early explicit goal of this workflow remains to avoid configuration fatigue. We’re aware alternative models exist and are certainly not averse to them, but for this workflow right this moment the operative word is focus.
The great news is that everything in the workflow is built on top of the new Text View, which is content agnostic. In other words, as you’ve noticed, there’s nothing tying Alfred to a particular approach and anyone can build their own!