If this quantification of lag is anywhere near accurate (it may be larger and/or more complex to describe), soon open source models will be "simply good enough". Perhaps companies like Apple could be 2nd round AI growth companies -- where they market optimized private AI devices via already capable Macbooks or rumored appliances. While not obviating cloud AI, they could cheaply provide capable models without subscription while driving their revenue through increased device sales. If the cost of cloud AI increases to support its expense, this use case will act as a check on subscription prices.