In theoretical level Cloud is much better. You don't own digital games anyway, you just have a license that can be revoked
Except you can totally own digital games, well some of them at least. Whatever I buy on GOG can't be revoked.
I stand against cloud always, so definitely in favor of locally downloaded here, but it doesn't matter much if the game has Denuvo or any other kind of crap like that. Just yesterday I was trying to play GotG and having a nightmare because Steam kept messing up my controller settings, which wouldn't happen if I could just run the game outside of Steam.
If a game has no DRM, then it's another story. A game like that, you own. You can play it with no internet connection always, on any computer. If GOG servers explode or more realistically the company shuts down or whatever, doesn't matter, as long as I have the installers downloaded I can keep them forever. It's how any digital content should work but unfortunately that's not the world we live in. Hell even some physical content doesn't work like that anymore, never mind that BMW car bullshit.