I use Tidal instead of Spotify. It's not perfect, but it integrates with Plex, which I use to host local files as well.
I use Plex's app Plexamp for daily driver listening, but also will sometimes flip over to Tidal, which has really good stations including a daily one for discovering new artists. I use this when I feel like something new.
My local files are a mix of ripped CDs from when owning those was a thing, Bandcamp purchases (which are still my default way to obtain music if it's possible), and Tidal files pulled via Tidal-DL (when there's not a quick/easy way to purchase the music permanently).
Over time, I've moved from streaming full time from Tidal with local files to fill the gap of more obscure stuff to streaming full-time from my own collection while occasionally using Tidal directly just for discovery.
The irony being that the ones upset by the API changes wouldn't be using the first party client, so if anything this would have filtered out the people in favor of closing down. I say "would have" because that would require this having actually being what happened. All of those polls I saw were open for days, and the people whining about the closures in the comments just didn't notice because they didn't actually use the site much or were just oblivious as shit.