Almost, you can't declare a generic local lambda.

    public void Test()
    {
        // Doesn't work
        Func<A, string> lam = (A a) => a.ToString();

        // Works
        string LocalFunc<A>(A a) => a.ToString();
    }

Also I think if the local function doesn't close over any variables in the containing method then there's no additional memory allocation, whereas the lambda itself must be allocated.