We opt for the central server as a super-peer and use the Yjs differential update system to avoid loading docs in memory for too long. While there are many things about local-first that are a huge pain in the ass, the UX benefits are pretty huge. The DX can be nice too! Getting to focus on product and not on data transit (once you've got a robust sync system) is pretty sweet. The first 4 weeks of launching our Yjs-based system was rough though; lots of bugs that virally replicated between peers. It requires a really paranoid eye for defensive coding; after several years, we have multiple layers of self-healing and validation on the client.