Correct! It is not so much about the resolution but the provenance of that recording's original master. I have heard files in 16bit/44.1lHz that sounds simply amazing. For example, Shirley Horn's "Beautiful Love" or "If You Go" in 16bit/441kHz on Qobuz sounds stunning in my system.
Finally this was mentioned. Not sure why this doesn't get brought up more in these discussions. Provenance / mastering is everything, NOT the format or resolution (although there are merits for sure) generally speaking. Really, its what version is one referencing (the catalog number).
There are 20 versions of say a Beatles, Zep album, whatever. One, two or three of those versions sound excellent, the rest sound either OK, meh or absolute crap (compressed to hell).
So when comparing a local file vs. a streamed file, it has to be apples to apples with regard to the version of said song/album. However this can get tricky, because the streaming services don't usually provide the meta-data. To make matters even worse, you have no control or are ever aware when the streaming file/album changes e.g. today the album might be "catalog #1 from Capitol" next month they may replace that version with a remaster (different catalog # / label) and could be worse or better.
I have streamed a song/album that sounds better than my local file version and vice versa.
Although I am streaming more (qobuz), my local library is pretty large and that won't be going away anytime soon, if ever. I still purchase the stuff I like since the artists are getting so royally screwed by the current streaming model.
All that being said, streaming isn't going away and to get the most out of it, requires planning and good component matching (much of which has been already stated)