It’s by far the most common. Most people just buy Hue lightbulbs and an hub to use with their existing home setup, which involves physical light switches still being present.
> Pushing closer to tin-foil hat territory…
For lights specifically: If this is a threat model that worries you, it’s quite easy to setup something like home assistant.io with zigbee lights.
Your repudiation appears to be about centralized services, not about “smart” devices as a general concept.