I agree it is more like e2teee, but I think there is really no alternative beyond TEE + anonymization. Privacy people want it locally, but it is 5 to 10 years away (or never, if the current economics works, there is no need to reverse the trend).
> ... 5 to 10 years away (or never, if the current economics works...
Think PCs in 5y to 10y that can run SoTA multi-modal LLMs (cf Mac Pro) will cost as much as cars do, and I reckon folks will buy it.
There's FHE, but that's probably an even more difficult technical challenge than doing everything locally