How it's any better? Small companies can be bought by big companies. French government is as capable of trampling over their citizen's privacy the moment they feel they need it as US government is. And putting a squeeze on a small startup is way easier than on a major cloud company (not that either is particularly hard). Also, OpenAI used to be an idealistic non-profit one day too, then it started to smell trillions and all that went of of the window.
> is not going to be nearly as capable as an off-device inference system.
I rarely need PhD-level research into my browsing history. I'm not going to solve millennium problems on my bookmarks. The tasks that I will realistically need are well within capacity of most very basic local models. Maybe they'd be a bit slower, who cares.