@fire_water -- not sure what's so confusing. I stream from Qobuz and also use my local collection (65k tracks) which is always available even if the internet is down, though that's a rare event for me.
The big question for you is how to create your local library. Generally, one either rips CDs or you download files. You'll need to rip CDs on your computer and copy to the storage drive, or download them and move them to the storage drive. (And don't forget you'll want backups in case something happens to the primary storage device.) My understanding is the the Pulsar's Sense app works with an external USB drive, however I don't have an Innos product so can't offer any further details.

