For a lot of tasks smaller models work fine, though. Nowadays the problem is less model quality/speed, but more that it's a bit annoying to mix it in one workflow, with easy switching.

I'm currently making an effort to switch to local for stuff that can be local - initially stand alone tasks, longer term a nice harness for mixing. One example would be OCR/image description - I have hooks from dired to throw an image to local translategemma 27b which extracts the text, translates it to english, as necessary, adds a picture description, and - if it feels like - extra context. Works perfectly fine on my macbook.

Another example would be generating documentation - local qwen3 coder with a 256k context window does a great job at going through a codebase to check what is and isn't documented, and prepare a draft. I still replace pretty much all of the text - but it's good at collecting the technical details.