orcishgamer: I would find it hard as hell to develop offline, there's so many great tools and references out there. Hell, my build processes dynamically pull down libraries and resolve their dependencies automatically for me (plus source code and Javadoc if they exist), what you're describing sounds rather self limiting. Don't be afraid, there's no reason in this case. Just make sure you have a source code commit to someplace safe, at worst you lose a few hours or work.
If's not that bad for me.
I have a sizeable library (both physical books and pdf books), I use Python (documentation comes with the interpreter offline) and the web2py framework (official documentation is downloadable offline).
Additionally, I saved an offline copy of a few choice web pages and keep my other computer online in case I need to do a search.
At this point, I've read so many books that I've become very knowledgeable on the technologies I use the most (browser development, the web framework I use, Python, C++ in particular).
The technologies I use are so darn portable that I run the development version of my web server off a USB stick (if someone ever steals my laptop... not because they are out to get my work, but because a laptop is valuable, they won't get any of my work regardless).
Really, the main things I'm missing out are some of the facilities external services the framework has built-in facilities to interact with (captcha, Paypal, an external email server, a real certificate authority for TSL).
I've also toyed with the possibility of using OpenID for login (actually, as a user, I really like the concept, but I'm not sure how well it would go with some people).
I'll need to come around to those and I'll need to be online for that so what you are describing will have to become a reality (it's just a reality that I procrastinate in making).
When you work for a corporation (either permanently or on contract), you have a safety net, but as a lone developer with few financial resources to duke it out legally, I feel extremely vulnerable to theft and I definitely have some trust issues.
I trust (within reason) and love unconditionally 90%-95% of my follow humans (even if I feel that some are political morons), but I know that the remainder is significantly morally challenged (not saying they were born this way, but regardless, they became what they became) and a small percentage of those is rotten to the core so I don't like leaving the keys to my personal kingdom laying around. It feels like gambling.
When I hear about people breaking into computer systems and ruining people's lives for lulz, steal credit card info and hold services ransom at a critical time unless money is paid, it becomes plain to me that some people who are very technically intelligent have the moral/emotional IQ of a 3 years old and it's not a reassuring prospect.
I don't have the time or interest to dedicate as much energy on security as those creeps so I won't pretend that I can really beat them at their games if I leave too many doors open. However, I can limit their entry points and mitigate the damage they can do if they get in.