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FWIW, I just tried the same prompt with open assistant
> {"primary_hue": 345, "complementary_hue": 55, "reason": "For bedtime, warm orange tones at 345 create relaxation while paired with cool green at 55 helps prepare your body for sleep."}
You can absolutely replace this with something self hosted, this was using the `oasst-sft-6-llama-30b` model on https://open-assistant.io
This is broadly the ethos behind Home Assistant. It runs on a Pi or similar box and it acts as an abstraction layer on top of a bunch of drivers for smart sensors and actuators. It's totally offline, though if you're really against being connected that also means you can't access it remotely (unless you SSH into a local machine). The dashboarding is competent, though there are often little things that are frustrating to modify (but it's open source, so the opportunity is there).
The whole system is a sort of IFTTT and quite powerful. Since every entity is exposed as a generic device with some capabilities, you can easily set up little automation routines.
At this point pretty much all the "big" names are supported - I have a mix of Hue, Aqara, iRobot, IKEA and other devices and they mostly just connect. There's also support for unusual things like Octoprint and router status. And now there's also ESPHome so you can make your own sensor nodes.
The biggest challenge with offline voice control is latency between speech to text, inference and text to speech. Running offline is less of a problem, but the really impressive aspect of Alexa, Siri, etc is how fast they can respond to you.