Why it is stored in your browser
A prompt is often the most specific thing a team owns - it encodes how they talk to customers and what their data looks like. Keeping the library in localStorage means there is no account to breach and no copy of it on anyone else's disk. The trade is that it lives in this browser, which is what Export is for.
Variables, not copies
Ten near-identical prompts with one word changed is how a library rots. One prompt with {{ variables }} stays one thing to improve, and the fields make the differences explicit rather than hidden in the middle of a paragraph.
Versions catch the bad edit
Every time the text changes, the previous body is kept - up to ten back. Prompt edits are hard to judge and easy to regret, and a one-click restore is the difference between experimenting and being careful.