(1) Collaborative features and syncing are easier to build when all the data lives in the cloud. There are currently no easy ways to build collaborative decentralized apps that scale and perform well and don't lose data. The best compromise solution today is probably cloud syncing, which is the Apple approach and keeps most of the brains local while using the cloud as a cache and a relay... but that tends to lead toward more and more stuff going to the cloud over time.
(2) The cloud is the only DRM that works. Cloud software can't be pirated because the user doesn't even have most of the software. At best the user gets the UI frontend in the form of obfuscated JavaScript or WASM.
(3) Due to #2, it's possible to easily collect recurring payments. "Recurring revenue" is the holy grail of virtually all businesses. Some VCs don't even consider non-recurring revenue in valuing a startup company. If your company collects $1M in one-time licenses and $100/month in subscriptions, some investors will literally chalk you up as having $100/month MRR.
(4) Cloud SaaS is a political loophole around free-as-in-beer ideology. The "information wants to be free" ideology tends to poo-poo commercial software and insist on the freedom to pirate everything, but cloud SaaS gets a free pass. Even better: with cloud SaaS you can use FOSS software without giving anything back! ... unless the license is AGPL, BSL, or Commons Clause, but those are not "true" FOSS licenses according to the FSF. (The AGPL sort of is, but it's also not strong enough to really prevent SaaSification.)
(5) Last but not least: shipping software sucks, especially on Windows. The Windows MSI installation subsystem is a horror from the deepest smoldering pit of hell. Be sure your company offers mental health benefits for PTSD treatment if you have to ask an engineer to deal with it. Mac and Linux are a little better but they are collectively only about 1/4 of the desktop market. The web offers a zero-friction "install" process that makes adoption and updates seamless and easy.
If those problems can be addressed, we can see a renaissance for real software that serves the user and doesn't have 100+ms latency for every action.