Can I run Windows Deployment Services from start to finish without using the network?

If you're interested in capturing an image automatically from your computer(s) to physical media (E.G. CD, DVD, BD, USB, etc...) you can use a tool that Microsoft created called: Microsoft Deployment Toolkit.

MDT Supports all media types as long as it is bootable on your system. So if that is USB then it will work. If it is PXE then use that.

You can create a sequence of commands called a task sequence to automate whatever you're doing from deploying operating systems to capturing an image of an operating system. MDT includes example and template task sequences for the vast majority of deployment/imaging scenarios. It includes support for drivers, applications, SQL monitoring, ADDS, and much more!

Final thoughts: PXE booting is only if you need it. If you have an environment with a lot of computers then I would recommend PXE. If you can handle it with DVDs, CDs and USBs then go for it. Go with whatever you're comfortable with.

PXE ain't hard if you have a MS DHCP server because WDS auto configures it (if you check the box in properties of the WDS server).

Links:

Microsoft Deployment Toolkit (It is free):

https://technet.microsoft.com/en-us/windows/dn475741.aspx

How to include all of the boot files on physical media (it is tailored to deployment but the same principles apply to image capture, just make sure you have a writeable medium for recording the image):

http://www.vkernel.ro/blog/creating-an-offline-mdt-deployment-media

TL;DR:

It is possible to image capture automatically from physical media (E.G. CD, DVD, BD, USB, etc...) as long as you have a place to store the image after it is captured.