It's quite limiting on:
1. It only mocks API Gateway, and not accurately (ie. IAM permissions). You also need to use a bunch of other similar plugins to mock DynamoDB, SNS, SQS, etc.
2. You need to change your code (wrapping your aws-sdk to connect to localhost) to use these mocking plugins.
I posted elsewhere in this thread but checkout SST (https://github.com/serverless-stack/serverless-stack), it lets’ you work on your Lambda functions live without having to mock AWS services locally. Here’s a short demo (https://youtu.be/hnTSTm5n11g)