There is that, but the way this usually works is that there is always a better closed service you have to pay for, and we see that with LLMs as well. Plus there is the fact that you currently need a very powerful machine to run these models at anywhere near the speed of the PaaS systems, and I'm not convinced we'll be able to do the Moore's law style jumps required to get that level of performance locally, not to mention the massive energy requirements, you can only go so small, and we are getting pretty close to the limit. Perhaps I'm wrong, but we don't see the jumps in processing power we used to see in the 80s and 90s, due to clock speed jumps, the clock speed of most CPUs has stayed pretty much the same for a long time. As LLMs are essentially probabilistic in nature, this does open up options not available to current deterministic CPU designs, so that might be an avenue which gets exploited to bring this to local development.
> there is always a better closed service you have to pay for
Always? I think that only holds for a certain amount of time (different for each sector) after which the open stuff is better.
I thought it was only true for dev tools, but I had to rethink it when I met a guy (not especially technical) who runs open source firmware on his insulin pump because the closed source stuff doesn't gives him as much control.