That’s what I thought too..
This is because the HTML 5 client hasn’t yet achieved full parity with the Flash client (see here). To get the Local File option, browse to:
Notice the URL? With the HTML5 client, you went to https://vcenter/ui. So just use the right URL (https://<name of your vcenter or IP/vsphere-client/?csp) and you should be good till the devs bring the HTML 5 client upto speed.