I honestly suspect that MS is going to keep a pattern of keeping one primarily desktop and DIY audience happy with a steady and stable verson and another version aiming at getting the OEMs to embrace MS shifts. What we saw with Windows 7 and 8 for a while and then 10 rolled out. 11 is clearly pitched at touch screens and OEM aligned devices.
They might make the "Workstation" edition a better draw or by the time 11.1 or service pack or whatever slips out will allow you to keep data local
If they don't then the case for the likes of IBM/Redhat or Canonical or Suse to more strongly integrate with Hyper-V and Windows 11 aimed at DIY and Workstation users in an edition of their workstation Linux will arise really strongly. It really is at a point where on a threadripper or the like the ability to run both Windows and Linux workloads is a major plus point.
My brother with his 17" ZBook has Windows 10 as his boot to OS but is running his Suse VM about 35% of the time (tools used for his MSc are Linux bound). Moreover between WSL et al MS has built itself a situation where a lot of people really are continuously aware of both *nix and Windows and I imagine VSCode's popularity on Linux systems isn't going away soon. So at the moment it makes sense to run Linux on Windows but I think the direction of running Windows on top of a decent KDE aligned Linux distro isn't far off.
Fundamentally though it is worth keeping in mind that from MS bottom line it doesn't matter if people are using Linux on some of their PCs as long as the person still has one Windows machine and an MS account. I do not expect MS to ever make Office available standalone on Linux but the notion of of Office365 apps on Linux is one I am sure is happening quite soon. MS wants mindshare and on top of that they want the nice sweet OEM market on laptops and tablets and the like. They also have always worked very hard to keep enterprise clients and so long as new computing devices are carrying Windows MS continues to dominate.