From a personal experience:

I see some benefits but i will make your developer life a nightmare… it is like trying to focus on a single problem in a zoo on fire with all gate open…

if not locked in a cloud service…

https://www.googlenestcommunity.com/t5/Apps-Account/LAN-mode-support-on-Google-Home-app-for-Matter-accessories-is-mandatory/m-p/456539