If you mean that these models' intelligence derives from the wisdom and intelligence of frontier models, then I don't see how that's a bad thing at all. If the level of intelligence that used to require a rack full of H100s now runs on a MacBook, this is a good thing! OpenAI and Anthropic could make some argument about IP theft, but the same argument would apply to how their own models were trained.
Running the equivalent of Sonnet 4.5 on your desktop is something to be very excited about.