It's amazing to me. You say this like it isn't an absolute horror. We've really ramped up the malignant bloat of the software industry if it goes this way.
We'll have this massive machine to do "home automation", something that by all rights should be possible with less computing than is deployed in smartwatches today. Yuck...
Moving the LLM from SaaS to the home, reducing the power distribution problem, and giving people control back over their data - getting it away from Big Tech. The home controls should also be more responsive that most current modern home automation that mostly uses wireless and Bluetooth to a cloud service. These are all good things.
That's just one piece of the puzzle. If you're running the LLM there's no reason your family's mobile devices couldn't use said home LLM box to save battery life on their devices while maintaining control of their data, searches, photos, files, etc.