Smaller models really arent great at structured output. If this works it would be great for a local model that might not be as good but as long as it respects structured output will be vastly more useful.
That doesn't seem to hold true. Consider gpt-5.4-nano which supports structured output just fine.
https://developers.openai.com/api/docs/models/gpt-5.4-nano
It seems like a concern that's orthogonal to the model size.