You have backup and tape but not shared storage‽ Wut‽

I misunderstood what you meant by local accounts. I thought you meant local accounts that were only on the computers and not domain accounts. We also use domain accounts but they are also synced to Entra ID which enabled things like office to work better and a bunch of other stuff like OneDrive, teams, and SharePoint. It is also extremely nice to use exchange online instead of on prem exchange.

Personally it seems like a HUGE pain in the ass to backup workstations. We never do that. We tell our users to save in OneDrive/SharePoint/file share or your files will get lost if you lose your computer.

How do you do the backups? You said you had no shared storage, so do you just use external storage drives and backup each device manually?

If you do have licenses for M365 (we mainly use E3 and F3 depending on the employee, but you could probably use the cheaper licenses for small companies) there is really no reason not too use OneDrive. It's convenient for the users and for IT. If you don't have licenses you shouldn't have to worry about OneDrive anyways because you don't pay for it.