How is this approach better than using react-query to persist storage which periodically sync the local storage and the server storage? Perhaps I am missing something.
That approach is precisely what the new TanStack DB does, which if you don't know already has the same creator as React Query. The former extends the latter's principles to syncing, via ElectricSQL, both organizations have a partnership with each other.
Yes, you’re missing a lot of things. Like how to update that data when you are offline and have everything sync around when others have made updates to the same data in the meanwhile. Among many other concerns and use cases.