When it comes to AI, anything less than local will not have more worthwhile impact than if people just stuck with mainframes, and Apples and PC's never appeared at all.
I feel like local LLMs should do to desktops and laptops what apps did to mobile phones. An increase in desktop developers and a new desktop app store. I also expect an increase in the number of available browsers.
None of the distilled models are anywhere close to as good as the full fledged ones, so no.