The real target of small models is surely the opposite: knowing with clarity how to conversationally or otherwise reason about your requirements in natural language, sound and imagery, consult APIs that interact with apps, and then have a strong, generic capability to reason about what it finds.

If you want it to know more things locally, you could hopefully distribute wikipedia or other appropriate large sources on a flash storage, properly pre-indexed, with a local tool API, and let it work its magic on that. Not least because that is as I understand it, considerably easier to incrementally update.

This is, without doubt, a very difficult target, not least because it is rather at odds with the way LLMs work on a crude level.