Some related work with similar goals, but apparently less developed software: Local-first software
A notable technical difference is the units of conflict are very small. They support a change history that can include individual keystrokes.
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Indeed, @DougReeder, lots of affinity! There’s actually quite a bit of software around, worth checking out https://crdt.tech/
CRDTs orient primarily to “multiplayer” collaborative editing. So, an integrated system might have the “file system” on remote storage, while supporting collaborative editing inside a “file” using CRDTs.
(I’m working on m-ld, in which the “file” is called a “domain” and contains structured data – actually a linked data graph).