Having a microcontroller in the phone is nice because it is WAY less likely to break. I love being able to flash a simple firmware/change things would fighting it too much.
Oh! Also I do all the 'WebRTC/AI dev' in the browser. When I get it working how I like, then do I switch over to doing the microcontroller stuff.
But medium-sized and small models never hit that sweet spot between open-ended conversation and reasonably on-the-rails responsiveness to what the user has just said. We don't know yet know how to build models <100B parameters that do that, yet. Seems pretty clear that we'll get there, given the pace of improvement. But we're not there yet.
Now maybe you could argue that a kid is going to be happy with a model that you train to be relatively limited and predictable. And given that kids will talk for hours to a stuffie that doesn't talk back at all, on some level this is a fair point! But you can also argue the other side: kids are the very best open-ended conversationalists in the world. They'll take a conversation anywhere! So giving them an 8B parameter, 4-bit quantized Santa would be a shame.