I think it would be better to fix the public network than to split the network into millions of local networks...
The public design today still allows actual file transfers to be local over your local network - it is only metadata that goes over the public internet.
Sure, ideally that'd be the case. But today that kind of isn't feasible as discovering and providing content is slow, but hopefully it gets better in the future with changes like this and more.
But what I wrote is how you can solve the issue today.