Do entitlements of newer online versions of Microsoft 365 allow for downgrade of older Microsoft 365 on local/ on-prem use?
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No 
there are no downgrade rights.
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FromSA used to have Professional Plus deployment rights.
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This is an interesting question.
A few weeks ago I too would have resolutelly sad: “No, there a no downgrades”
A few days ago I had an interesting project, which involved the downgrade of the Windows OS.
Customer had WinE3 per User (which is a part of the M365 E3 Suite).
The PTs state that the downgrade (and LTSC) rights are not given to cutomers licensed under a Customer Agreement. Which means that EA/MPSA customers do have downgrade rights on WinE3.
As a result my new answer would be that it depends
- some Prdoucts of the suite can be downgraded if it has been licensed under the correct agreement
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