The biggest benefit for developers that I've seen is that state management gets _much_ simpler when it is all handled by a local database. Just run queries directly on every app/page, with live queries if the framework supports it. No need for maintaining in-memory app state and propagating changes to the different parts, no need for caching and associated cache invalidation issues.
The caveat is that keeping the local database in sync with the server is not easy, and it's best to use other tooling for it. I'm working on PowerSync [1] myself, and ElectricSQL [2] also looks quite promising (both also mentioned in OP).
[1]: https://powersync.co