And if it were a file, you could sync it with dropbox or OneDrive.
And if you can do that, they can't make money selling their own cloud service for their local-first app.
More specifically, if you can edit different parts of a same document on different devices, then the document should be split across multiple files that can be synced independently, e.g. a photoshop document where each layer is a separate file and a "main" document simply loads them into a single layer stack.
In fact there are too many document types nowadays that are composites of sub-files and are even actually just a zipped folder under the hood. It feels like we should have just been using files all along, or some sort of file-folder hybrid with OS-level support instead of using zipped folders to contain all the files of a single document.