Local light control possible? (Hue bulbs with Sylvania dimming Switch)

It depends on which DTH you are using for the Sylvania buttons and for the Hue bulbs.

Are the Hue bulbs connected to a hue bridge? That’s the only officially supported method, for a number reasons.

If your Hue bulbs are connected to a Hue bridge and you are using the stock device type handler for the Sylvania devices, you should be fine: the official smartlighting feature should run locally, even if the Internet is down. But it all depends on which device type handlers you are using.

I’m tired today, so I will leave it to other people to explain how you can check for yourself whether your own account is set up this way.