Not that I agree with using local accounts instead of domain accounts but fair enough.
It's much better than the old way of home folders in a file share.
arguably subjective
Yes, of course. IMO OneDrive is much easier for the end user instead of having to remember to store files in a share or using folder redirection which is prone to fail sometimes. Because using OneDrive they only have to store files where they normally store them and they get automatically synced and backed up to OneDrive. Something being easy is a huge benefit because it will ensure documents and everything else is backed up properly and it reduces support load.
Please tell me you have some kind of backup of those computers where you don't use shared storage or apparently anything "proper".
You don't use Windows home too, right?
Btw, GPOs only work using a domain. You are probably using local policies and those are sometimes not as likely to work.
You have backup and tape but not shared storage‽ Wut‽
I misunderstood what you meant by local accounts. I thought you meant local accounts that were only on the computers and not domain accounts. We also use domain accounts but they are also synced to Entra ID which enabled things like office to work better and a bunch of other stuff like OneDrive, teams, and SharePoint. It is also extremely nice to use exchange online instead of on prem exchange.
Personally it seems like a HUGE pain in the ass to backup workstations. We never do that. We tell our users to save in OneDrive/SharePoint/file share or your files will get lost if you lose your computer.
How do you do the backups? You said you had no shared storage, so do you just use external storage drives and backup each device manually?
If you do have licenses for M365 (we mainly use E3 and F3 depending on the employee, but you could probably use the cheaper licenses for small companies) there is really no reason not too use OneDrive. It's convenient for the users and for IT. If you don't have licenses you shouldn't have to worry about OneDrive anyways because you don't pay for it.