Also no local files.

When you say local files, do you mean files on a usb stick or hard drive plugged directly into the device? I use Infuse on my Apple TV to access my videos on the network. It can pick up media from a samba share (or probably any other network share). There's more info on their site: https://firecore.com/infuse

It can also serve as a front end for a Plex server if you run that. While this isn't "local files", it works well and serves a similar purpose. Note: there is a very fair, cheap monthly/yearly/lifetime subscription required for any advanced features but it's free to try. I pay $12.99 for the yearly subscription and I'm incredibly satisfied. If this reads like an ad, it's not, I'm just really happy with it.

What would you need a web browser on Apple TV for? I just Airplay from another device.

I needed it for checking the weather. Works great if you can add a shortcut directly in the main menu.

I consider this to be working as intended.

a computer without a web browser? definitely another apple idea to keep you in some garden.