And based on options (local pickup / shipping), we can control which fields to be displayed for billing address? As I dont want to force my customer to enter full address if he is opting for Local Pickup.
Yes based on the hooks and templates in WooCommerce you can customize the flow of checkout to be anything you want. I know that's a simple answer but most things you can think of can be done in WC. Even pulling in live shipping rates via an API to FedEx, USPS, UPS, etc...
