The Local domain is the equivalent of /usr/local - it should be owned by
root and writable by root only. It contains software specific/custom for
that machine (as opposed to software installed with the distribution), but
still installed and managed by the machine *administrator*.
User specific software should be installed in the User domain (the
document makes no mention of this). Installing in the User domain also
allows different users to install different copies/versions of the same
software, and each one will only see/use his own copy/version - which
looks cool.
Another issue is that Network/Servers and Network/Users make no sense /
have no relevance to the document and should be removed.