Will it move or rename my files?
No. Harmony reads your folders where they are and writes nothing into them. The only files it ever creates are the ones you asked for — a CD rip, or a podcast episode — and both go where you tell them. Everything else it knows lives in its own database.
What does it play?
FLAC, ALAC, MP3, AAC, Ogg Vorbis, WAV and AIFF, at whatever sample rate your output device is running.
Does it need an internet connection?
Only for the parts that are on the internet: podcast feeds and their episodes, and the album lookup when you rip a disc. Playing your own library never touches the network. A disc the lookup cannot find still rips — it just arrives with whatever the disc itself could tell us.
Can I bring my playlists across?
Not yet, and this is the honest gap. Podcast subscriptions come over as OPML, but playlists are made in Harmony rather than imported — there is no M3U reader. If that is what stands between you and using this, say so on the issue tracker, because it is the thing most likely to get built next.
What happens if I stop using it?
Nothing happens to your music, because it was never Harmony’s to hold. The files are where you left them, in the folders you made, with the tags they came with. The database is a convenience; delete it and you have lost some playlists and a play count, not a collection.
Is it really free?
Yes, and the source is public under the Mozilla Public License. There is no paid tier, no upgrade, and nothing about you is worth anything to anyone here.