Local AI models are already more than capable enough writing code that surpasses the ability of any bad or even mediocre engineer. That is not something we need to worry about.
In a way, this is less of a cost issue than the fact that some/many engineers do not seem to be willing or able to host things themselves anymore and will happily outsource every part of their stack to managed services, be it CDN, hosting, databases, etc. I don't know why that's not more alarming than the LLMs.
Qwen 3.6 27B is shockingly good, just to add to your point.
Thank goodness for China or Silicon Valley capitalists would be locking us down into an unimaginably awful dystopia. Though they're not done trying.