Funny enough the mac has almost the same processor as my iPhone 16 Pro, so its just a RAM constraint, and of course PrivateLLM does not let you host an API.
An M4 Pro would do much better do to the increase in RAM and GPU size.
This has been the hardest thing for me to learn and since everything's evolving so quick, what's recommended one week might not be the next.
Some people overload "local" a bit to mean you are hosting the model - whether it's on your computer, on your rack, or on your hetzner instance etc.
But I think parent is referring to the open/static aspect of the models.
If it's hosted by a generic model provider that is serving many users in parallel to reduce the end cost to the user, it's also theoretically a static version of the model... But I could see ad-supported fine tunes being a real problem.