Jay I haven’t felt the need to use local documents so far. I am happy with the level of encryption offered for the online documents (and I am a security freak), however I haven’t really run an attack test to validate it. I think with some documentation that describes/proves the tamperproof resilience, people might not be as inclined to using local documents, especially with a disclaimer that the dev team cannot access the data without the password(s) because it is encrypted at rest.
Of course, business wise, there might always be a need for absolute confidential data that cannot leave ac company’s premises.