> It doesn't allow you to run all the other services like DynamoDB, SNS, S3, etc. locally.
Sounds like you're mixing up how a test pyramid works.
AWS SAM supports running unit tests locally. Your remarks refer to integration tests. Integration tests are expected to be performed on environments that mimic either subsets of the production environment, or the whole production environment.
https://docs.aws.amazon.com/whitepapers/latest/serverless-ar...