For me it does. I don't trust other ppls gear

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That's cool. You can be as local or not as fits your preference.

My point is that "logical machine" need not necessarily be 1:1 with "physical machine". Our goal is to make that distinction as fungible as the user wants (including not at all)

cool i guess. But local means on my machine. cloud is someone elses. just not a fit for this use case imho but hey itll be a popular transitional til abused by whoever sits at data choke point. til then. let le bon temps roule as the cajun say

To be clear, personally I would only use cloud services for encrypted-at-rest redundancy. In case my local machine explodes I could restore.