Justin, if you decide to work with a local document, you can copy paste components between documents. When you make changes to the source document, the consuming document will notify you about available updates.

The only difference in functionality while using components from a local and cloud doc is how you access them. If the source document is a cloud doc then you can easily add it to any/new doc via the Assets Panel. If the source document is local, then you need to manually copy paste your components from it.

Jonathan Pimento (Product Manager - Adobe XD)