You're not getting it. You only see those screens if you don't have an MS a/c.
They didn't appear for me presumably because I do.
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I have been using my laptop with my local account - i.e. NOT an MS account - up until now.
Today I wanted to use Skype on the laptop for the first time. Skype requires the use of an MS account. Hence I created a dummy MS account (@outlook.com) with which I logged in and used Skype.
LITTLE DID I KNOW THAT I WOULD NOT BE ABLE TO USE MY LOCAL ACCOUNT TO LOGIN ANYMORE!!!
I have the original user-id and password for my local account well documented (and protected).
BUT now I cannot log in with the MS account I created because some problem with the password (it has been blocked due to too many erroneous tries I reckon). Since it was meant to be a dummy account which I did not intend to use in the future I did not bother completing the form and take note of such things as security question, alternative e-mail, telephone etc.
NOW WHAT???
I WANT MY LOCAL ACCOUNT BACK!!!
What can I do??? I am desperate for help on this issue.
PS: I created another MS-dummy account with which I am posting this question.
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You're not getting it. You only see those screens if you don't have an MS a/c.
They didn't appear for me presumably because I do.
Nope, that's not true. Here's the entire setup process.
Which goes to: 2. This screen. This lets you create a new account (either Microsoft online, or use the link at the bottom to create a new local account).
3. Which lets you create a local PC account.

There is no time when you are forced into using, creating, or seeing an online account.
Follow instructions on this site to revert to using your local user account: http://www.techrepublic.com/blog/windows-and-office/quick-tip-change-microsoft-live-to-a-local-account-in-windows-81/
The problem is that I should not have to search the web, and find a site that tells me how to undo the damage Microsoft has done.
What should be done is this:
* I have my local account just like I've used since '95
* I also select one of my Live/Hotmail/msn/whatever accounts and hook them together.
* I always log into my local account.
* I might log into my Live account if I wanted to buy a game or something
* I can log into my local accounts access my secured stuff on my LAN
* I can log into my local account without internet access
* I can log into my local account when I delete the Live/Hotmail/msn/whatever account
* I can log into my local account when Microsoft get's hacked and the passwords are stolen and changed
* I can log into my local forever because I bought the machine and it's mine.
* I can use Box, or Google for shared drive space because the idiots at Microsoft want to lock everything together.
Microsoft should not delete my local account and data when I try to log online for the first time.
If I wanted someone to manage my life for me I would have bought Apple.
Your local account and data is never, ever deleted. Never.
Everything you list can be done, just with one simple click at the bottom of this page to "sign in without a Microsoft account." You shouldn't have to search the web, just follow the instructions that are on your screen.

No, it cannot.
* Sign in without a Microsoft account
* Try to access the Microsoft store
* it ask for Microsoft account
THEN IT DELETES THE LOCAL ACCOUNT
It actually does a rename removes admin privileges, blocks access to LAN secured folders, and exposes you to losing access to your own computer when you Microsoft is hacked and your password is changed.
Actually it's worse that deleting your account because you can lose the ability to log into your computer.
Oddly enough, Windows 8 Pro works the way you describe, but my new installation of Windows 8.1 Pro screws things up. 8.1 is only safe for people that only use computers for online games.