Local models can be widely used as productive assets. Yes the infrastructure of SOTA API models is engineered specifically for you to be that utility, but the blanket statement that local isn't up to par is intensely short sighted. Billions of tokens per month on local pays for the hardware when compared to sota costs per month.
I believe they can currently be used productively for non-coding tasks (classification, light summary)... but they definitely are not even close to SOTA when it comes to software development.