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What do you guys think of the idea of smart homes? I could make a basic setup using https://home-assistant.io to control my home temperature and lighting; the tools for doing this are everywhere nowadays and implementation doesn't seem too horrific anymore.
But setting aside what I "can" do, is this something that I "should" do? How can a person implement this without connecting any devices to the internet?
This is only true if you're controlling bulbs instead of switches. Virtually all of my lights are on z-wave switches that work almost exactly the same as regular switches, the only difference being that the switch paddle doesn't stick in an on or off position. Smart control is strictly in addition to the primary control.
Completely agreed on your other points, though. Absolutely no chance I'd use anything other that a local Home Assistant server that handles all processing locally.
I've installed an Aqara wall switch in a public room, and people are complaining that it doesn't feel as well as a regular light switch. It's really hard to get it right.