People said the same things about mobile gaming [1] and mainframes. Technology keeps pushing forward. Neural coprocessors will get more efficient. Small LLMs will get smarter. New use-cases will emerge that don't need 160IQ super-intellects (most use-cases even today do not)
The problem for other companies is not necessarily that data center-borne GPUs aren't technically better; its that the financials might never make sense, much like how the financials behind Stadia never did, or at least need Google-levels of scale to bring in advertising and ultra-enterprise revenue.
[1] https://apps.apple.com/us/app/resident-evil-3/id1640630077
Grammar-check and clip-art work fine locally. There are local use-cases, but the powerful use-cases are very important.