You could build a tool like that and on a MBP with 48+ GB of RAM all of that can happen locally in terms of keeping your content locally. I am sort of an outliner and planner and I heavily use AI when writing documents for work. I don't see why fiction / prose would be any different? Indexing your content with a vector RAG and having a little 27B model locally could do everything he wants with some help from a big model to implement it all. It sounds like a weekend of coding for a functional prototype to me.
He doesn't want to use a model trained on someone else's text. So he would need to train a model from scratch. I don't know whether his own texts would provide enough data.