Local AI will never be as powerful as cloud-based models, at least not in the foreseeable future. We’re talking about a difference between 7B and 750B+ parameters, a 100x scale gap.
I think the trend will be running open-weight models with the provider of your choice. You can always switch providers, avoiding vendor lock-in, with the trade-off of privacy concerns. You have to trust that the provider actually behaves the way they claim.