> Could a cloud-delivered LLM figure out how to drive this route, based on those input data and given access to those output actuators? Looks like yes. Sure.

Well, if the massive cloud models that are generalized and have a world model that's good enough, you can just distill them into smaller models. As a point of reference, the current gen of Tesla FSD models only have 1B params. They are tiny by LLM/VLM standards.