I don't think a locally hosted LLM would be powerful enough for the supposed "agentic browsing" scenarios - at least if the browser is still supposed to run on average desktop PCs.
This is probably their plan to monetize this. They will partner with a AI company to 'enhance' the browser with a paid cloud model and the local model has no monetary incentive not to suck.
Not yet, but we’ll hopefully get there within at most a few years.