I strictly use the local-only setup. I'm sort of OK if they still leave a relatively trivial backdoor to do this, but if they ever flat require an online account, I'm out, hard.
This is partially due to wanting to avoid the hassle and management of yet-another-forking-online-acct-IDGAF-about, but also because I have some machines controlling industrial processes (CNC machines, custom cutting machines, etc.) that I keep entirely off any network for security & safety reasons (yes, moving anything to/from those machines is all sneaker-net; simple, works, and my shop doesn't yet have the scale to justify that kind of networking/security/admin overhead).
I just hope that MS engineering is not stupid or powerless enough to allow MS marketing & MBAs to fully kill off the local account.
This entire attitude of exploiting customers by requiring spurious internet accounts & connections is making me start to think that the Internet is all a huge mistake. If that approach takes over, the world will literally be worse than before the Internet in every important way (and there are some solid arguments that it already is worse).
