1. Most people don't have machines that can run even midsized local models well
2. The local models are nearly as good as the frontier models for a lot of use cases
3. There are technical hurdles to running local models that will block 99% of people. Even if the steps are: download LM Studio and download a model
Maybe local models will get so good that they cover 99% of normal user use cases and it'll be like using your phone/computer to edit a photo. But you'll still need something to make it automatic enough that regular people use it by default.
That said, anyone reading this is almost certainly technical enough to run a local model. I would highly recommend trying some. Very neat to know it's entirely run from your machine and seeing what it can do. LM Studio is the most brainless way to dip your toes in.