Defining productivity is a use-case scenario, and a wildly generalized assumption for most people in this argument. Local infrastructure doesn't need to be sota for absolutely every single need for a dev lab, but it absolutely can be delivered with non-api frontier class models.
Just to be clear, I'm specifically talking about coding. I think local models can help with productivity today, just not coding.
I'm also a huge fan of local models and think it's absolutely imperative that they continue to advance so we can move off of the Anthropic/OpenAI hosted models. It's important to accurately asses where we are in that journey though.