You get to decide what is appropriate or not.
It works offline.
It can be used to by applications without the having to use an external service.
This can be important for a number of applications (I am thinking about open source games and the modding community right now, but it is just an example)
More to the point, I find it absolutely bizarre that one couldn't come up with quite a few reasons to have this be more private, whether personal or business.
Your personal or business stuff in other people's hands is generally not optimal or preferable, especially when more private options exist.
Because LLMs are expensive to host. It's more of a case that no one wants to run these on their PCs and it's the cheapest if it ends up running on client PCs instead of your own PCs. Not all use cases of LLMs need a super powerful model that is always up to date.
1) for people who want to make money using AI but can’t afford to pay for a LLM or servers, they can push that cost to the end user.
2) for people who want to generate porn or spam (probably, also to make money)
The privacy thing is complete nonsense. If you want a private server, rent your own private server. If you’re worried AWS is spying on you, you’re paranoid.
This is about money, making money and being cheap, not about good will.
So, you’re right; from a consumer perspective it’s pretty meaningless.