The local model powers the features nobody uses. The cloud model powers the feature everyone sees. You pay 4GB for the illusion of privacy.
How's this conspiracy supposed to work? A technical audience who cares about privacy aren't going to be placated by 4GB sitting on their disk. They're going to want some sort of analysis (like http interception), or probably not use chrome in the first place. A non-technical audience isn't going to make the association between 4GB of disk usage and the privacy implications.
And I want $1 billion dollars.
Doesn’t mean someone’s going to give it to me.
Natural Conclusion: when I use all the promoted AI features in chrome it's using the local AI model. This is not true; Google is being intentionally misleading.