Before Covid your idea was the one everyone was pursuing, including AVID with a embarrassing system that i never saw a in a satisfying version.
With Covid remote access became the norm and the online/proxy workflow more or less died. Avid still has a working version (better than the original) but it's widely used.
Proxies are used for several reasons, expensive storage, heavy codecs at high bitrates or multicams.
They are typically avoided whenever you can because the online part of a proxy based workflow can be a challenge. And especially if you have tight deadlines you want all the variables out of the way.
With Covid remote access became the norm and the online/proxy workflow more or less died. Avid still has a working version (better than the original) but it's widely used.
Proxies are used for several reasons, expensive storage, heavy codecs at high bitrates or multicams.
They are typically avoided whenever you can because the online part of a proxy based workflow can be a challenge. And especially if you have tight deadlines you want all the variables out of the way.