In similar vein ESPHome and Tasmota are 2 independent FOSS projects that can replace proprietary firmware on many commercial smart devices based on ESP32.
Some WiFi-based smart devices like those made by Shelly work without internet access and integrate with HA via local HTTP API.
Fully local smart home is possible, but you'll need to research what you're buying - as a general rule, you should avoid WiFi-based smart devices unless they offer a local API. Everything else (ZigBee, Z-Wave) should work offline without proprietary hubs, though I'm sure there are exceptions.
BK72xx: BK7231T, BK7231N RTL87xx: RTL8710BN, RTL8710BX
https://esphome.io/components/libretiny.html
But yeah, using both Tasmota and ESPHome I’ve moved all (bar one) of my “WiFi Only” devices to being fully local devices.
(The exception being my thermostat for my heating, that uses a tuya-mcu and a LCD driver IC so I don’t really want to reflash that and faff with the tuya-mcu this side of winter, and I’m planning to replace it with a OpenTherm controller next year anyway. In the meantime I’m using a local tuya integration in HA to just send it commands directly)
It's good to see that people are able to hack this stuff and make it less reliant on the companies. Heck they're probably selling some of it at a loss and hoping for recurring revenue from usage stats and other spying.
The bulbs aren't as good as Philips Hues though.