It's good to use a local DTD just for the same reason that you mentioned - link to the DTD site if it is unavailable then the Application would have problems.
Alternatives:
(i) Have it available in your local web server( I use this in my application)
(ii) Turn of the DTD validation(atleast on the production boxes). As the applications are tested before they go into production this could be an alternative as well.
HTH Manglu
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