I have a Dell 7490 (intel 8350u cpu) I paid $250 for and I have no trouble running 13B models through a custom interactive interface I wrote as a hobby project in an afternoon. It can still get a lot better. I made it async the following day and its even more fun.

Most of peoples' problem is watching the AI type, it's not instant, but then not all (or even most) applications need to be instant. You can also avoid that by having it return everything at once instead of streaming style.

Local absolutely can scale. All kinds of fun things can be done on a machine with 16GB of RAM, or 8GB if you work harder.