Full local solution for insteon integration?

In short, No. That's an Insteon users opinion.

Don't get me wrong, I'm with you 100% on how great Insteon is, but everyone else in the world that doesn't own Insteon isn't going to drop any coin on a proprietary solution when there's so much Zigbee and Z-Wave to choose from. Yes, Insteon is superior with their dimming control in hardware, and putting all Insteon devices in an Insteon scene gives very nice results that other systems cannot achieve. They don't however, participate in Hubitat Elevation groups with the Hue Integration in HE, as an example. If you're only using Insteon, you can access Insteon groups via an Insteon keypad. Might be a way by software without owning a keypad. Can't recall and I don't own a keypad either. Only bought one temporarily for initial testing with Chris (who, despite not being an Insteon owner other than a few devices he bought just for testing) graciously donated a significant amount of his time, money and effort to build these drivers, together with the help of Scott Kuester whom was the author of the node.js apps (Scott also wrote the original Homebridge plugin where this evolved from).

Having said that, because they are such an island, you either go with our community implementation that uses a separate computer to forward and receive updates via IP, or you replace the Insteon hub with an ISY. There's another user that's written an implementation for ISY, but I'm not sure he shares the code publicly, if at all.

We must have the separate node.js server. If you're not familiar with node.js, it's something you may wish to familiarize yourself with. I have other node.js apps I run too (i.e. Homebridge to allow Hubitat to show up in HomeKit, v1 Google Assistant Relay to allow silent control of Google Home compatible devices, and CastwebAPI to allow me to send TTS message in the official Google Assistant voice to a mini), in addition to the two simple node.js apps needed for my link to the Insteon hub. I run all mine on an old MacBook Pro laptop by just opening terminal windows and starting each process. Works great for me, and gives me the bonus of an always on computer to use with TeamViewer so I can remote back in to the hub for admin purposes. Plus, it's fast and automatically backed up with Time Machine.

If you're a MacOS or iOS user, and you own an Apple TV 4 or later, you could use HomeKit automations to sync Insteon via a Homebridge plugin for Insteon. I used to do this. It's not as capable as our driver, but it works. Was far too slow and unreliable when I had it configured long ago, but that was also a different Hubitat Homebridge app that wasn't as efficient as the one @dan.t has built. It might work fine now, but I've zero good reason to try it. This setup with our app is a far superior way to get Insteon directly into HE, instead of having to sync a bunch of virtual switches. The Homebridge part is really easy today with the Hoobs installer on a Pi or other computer.