I'd say neither, since

qwurx [shmem] ~ > perl -le 'local my $foo'
Can't localize lexical variable $foo at -e line 1.
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localizing in that context doesn't mean a local opcode is involved; rather, a local instance of whatever thing the loop variable is will be allocated. So localizing means that, for the loop variable, but aliasing is what happens to the current element of the list iterated over. Your code is a fine example for my/local, space/time (was: Re: The difference between my and local). The aliasing happens no matter what scoping rules apply to the loop variable:

our $name;
for $name (qw(red blue green yellow orange purple violet)) {
    $name = "foo";
}
__END__
Modification of a read-only value attempted at - line 3.
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But since an our localized variable works in time, at calling time $name is just the localized instance of $main::name, and the list for which it was used to iterate over has gone.