The sota chatbots are getting more and more functionality that is not just LLM inference. They can search the web, process files, integrate with other apps. I think that's why most people will consider local LLMs to be insufficient very soon.
Nah I disagree, tool calling isn't that difficult. I've got my own Cats Effect based model orchestration project I'm working on, and while it's not 100% yet I can do web browse, web search, memory search (this one is cool), and others on my own hardware.
But that's just software that also runs fine locally. A few tools with a local LLM can do it.