But what do you test your IAC against? If you consider using something like Terratest, then combining it with LocalStack means you can run Terratest nearly instantly and test your IAC.
Plus developers being able to run "AWS" locally menas they, too, benefit from the instant feedback loop. That alone is a good enough reason to use LocalStack, but there are other massive positives: no credentials to a real AWS account to leak; no developers spinning up some new AI tool 'cos it looks cool; and more.