I think the value of it is currently more academic than useful in the real world. Everything at the frontier is still only marginally Good Enough (in image generation, most of it is shit even from the best models), so things far behind the frontier in terms of capability (as a tiny 1-bit model necessarily must be) are unusable.

But, getting remarkably higher density of capability per unit of compute is a big thing. It means the frontier can get better and cheaper to operate and less resource hungry, and it means what can be accomplished at the edge, on personal laptops or phones, becomes a broader spectrum of tasks.

And, for privacy, there are a lot of things that should run on-device and not everyone has big dedicated GPUs.