Not only does it free the device manufacturers but it's something they can offer to app developer for free without costing them anything. Personally I think this is what will be the biggest impact (When/If they open raw "api" access to 3rd party devs). There are whole slews of apps that could make of that in small or major ways if it's not something the developer has to price into the app/subscription (especially with usage being something that can vary greatly user-to-user).
Some random examples I just came up with:
* Podcast app does STT for transcriptions/"subtitles" as well as episode summarization (Even cooler if the podcast provides chapter markers)
* Games getting new and interesting types of NPC's, level generation, etc
* Filters that do more than keyword matching (for news/social apps). I can technically filter out political Spam SMS messages but only with regex/keyword matching.
* Catch-up on 3rd party chat app conversations
I know LLMs will make plenty of mistakes and are far from perfect but there are things they can do very well that are very hard or expensive to do (sometimes just for indie-level devs but also for small/medium businesses). To be able to do those for free and offline would be a gamechanger.