Bummer. Was hoping it would be local instead.
They probably could make it an optional local install, but it sounds like focused on UX first and wanted collaborators on Teams to have the same experience which would maybe be harder with mixed local installs and cloud containers.
I deeply resent that my computer must be connected to the internet if I want to do work
Disclosure: I work on the design of the integration.
I haven't tried it yet, nor am I affiliated with Neptyne, but it looks intriguing.