Should I just throw my Aqara contact sensors (MCCGQ11LM) away?

Yes.

By default cloud. However, it supports HomeKit and @SmartHomePrimer described recently how to use Home Assistant to bring these into Hubitat locally in this post:

I don't have this hub - I have two of the Mijia hubs, and I didn't need internet access to either pair the devices or use them. I would bet the Aqara hub is similar, but @SmartHomePrimer would know for sure.

Been there. Done that. They are more stable with compatible repeaters, but no where near as stable as on an Aqara/Mijia hub.

Edit: BTW, that Aqara hub is much cheaper on AliExpress

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