The Rhasspy [0] author recently got hired by mycroft to work on satelites and fully local. Rhasspy requires a lot of manual work, but replacing Alexa is already possible. I’m somewhat stuck with the current hardware availability issues, but I have a Pi 3 satellite that does wakeword detection (this is supposed to be handled by Pi Zero 2 W in the future) and sends the voice to the MQTT server running on a PI 4, the data gets picked up by the Rhasspy instance also running there, it does STT, intent recognition, sends the intent to home assistant and then does TTS back to the satellite.
My main software issue is currently how to replicate the music functionality. Playing music at the satellite that requested it, lowering the volume when it recognizes the wakeword. Preselection of "commands" for band and genre names should be easily scriptable afterwards.
In a quiet room, I have no issues with wakeword detection using a playstation eye camera (I wanted the seed USB microhphone array, but between discovering it and starting with buying hardware the supply chain bit once again)
[0]: https://rhasspy.readthedocs.io/en/latest/