People have been conditioned to believe all software must be free, but that SaaS is fine. People are willing to rent software in the cloud but not pay for it at the endpoint.
Add to this the fact that the cloud is the ultimate DRM. It can’t be pirated if the user doesn’t even have binaries or have possession of their own data.
SaaS provides inescapable recurring revenue and very strong lock in. It’s massively superior from a business model point of view. Meanwhile the (much more) evil twin of SaaS, namely “free” surveillance and addiction driven apps, dominates B2C.
People might want local first software but if they won’t pay for it that doesn’t matter. The whole industry will wrap itself around whatever model pays. Everything is all about cloud and SaaS not because these are technically superior or better for the user but because that's where you get cash flow.