It doesn’t give it up, it just moves that aspect to the server. The server can still build an index over the documents in whatever way it likes, perform expensive queries, and only send the results to the client.
An example that matches that document structure is Figma; each document is individually small enough to be synced with the client, document metadata is indexed on the server, and queries over documents take place on the server.
This (moving relational ops to server) does not match the definition of local first provided in the article and gives up most of the value prop the article enumerates in the conclusion. I agree that Figma is a candidate to be implemented primarily as a document CRDT, same as the google doc example i already provided.