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Smart-homes: The future, or harmful?
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All important automations should run fully locally. I also find that focused and simple automations are often most useful. When I say simple I mean in terms of automation logic, not necessarily in terms of interfacing devices, which can be tricky at times. Example of simple automations I like most would be switching amplifiers on/off based on audio state changes, switching lights on/off relative to sunset, and switching electric water and floor heating elements on/off depending on energy price.
I agree, I also make sure everything is fully local. I have separate subnets for the server that runs home assistant, the IoT devices, and the trusted home network. Then I have some firewall rules that ensure that the IoT network cannot communicate with the WAN or the trusted LAN network at all, only with home assistant.
We have some simple automations at home to turn on the boiler in the afternoon when we have an abundance of solar power, and some basic automation to turn off aquarium lights at night such that the fish can sleep. Anything more complex just becomes unreliable and annoying.