Agent that has its own computer, plugins to connect it to various services and probably it's own memory. A virtual personal assistant. You could have different specialized Dots each with its own plugins, memory and instructions.

That's how I understand it.

Cloud compute means its work VM is isolated from your devices, so it can't destroy your local data as easily (unless it has access to your devices) and it's on 24/7. A big negative is that you are giving access to even more of your services and data to a third party and the lock-in into a walled garden happens once you start depending on it.