Why not turn the question around. All other things being equal, who would prefer to use a rate limited and/or for-pay service if you could obtain at least comparable quality locally for free with no limitations, no privacy concerns, no censorship (beyond that baked into the weights you choose to use), and no net access required?
It's a pretty bad deal. So it must be that all other things aren't equal, and I suppose the big one is hardware. But neural net based systems always have a point of sharply diminishing returns, which we seem to have unambiguously hit with LLMs already, while the price of hardware is constantly decreasing and its quality increasing. So as we go further into the future, the practicality of running locally will only increase.
It's a pretty bad deal. So it must be that all other things aren't equal, and I suppose the big one is hardware. But neural net based systems always have a point of sharply diminishing returns, which we seem to have unambiguously hit with LLMs already, while the price of hardware is constantly decreasing and its quality increasing. So as we go further into the future, the practicality of running locally will only increase.