The device is $200 and appears to be smaller than a phone so yeah, it does not run AI locally. I assume Siri doesn't run locally on Apple Watch or AirPods either.
Not that it refutes your general point, but the latest Apple watch runs (at least some) Siri requests locally on the device.
Yeah it sets timers, that's about it. Not saying this product is good but the intention of what they are trying to enable here is a world apart from what Apple is running on the watch.
My understanding is that in recent versions of iOS (and iPadOS) Siri runs a decent percentage of requests locally as well.