Thx! I thought about adding a context to the fetch handler, could be handy for local testing. Likewise, local commands (e.g. dev or watch mode) are not yet there. Those would be next on the line if the CLI starts getting used by others than me.
You can definitely run workerd in production on your own machines and some people do.
The biggest catch is that workerd's implementation of Durable Objects currently doesn't work across multiple machines, but I'm working on fixing that: https://github.com/cloudflare/workerd/pull/6780