This is actually where I see software going in the short term -- cloud moving to local.
A few years ago, if you wanted translation, you'd use Google Translate. If you wanted to search the web, you'd use Google search.
But for a few gigabytes, you can now install nllb-200-distilled-600M, and get translations for almost any language locally. You can have your computer crawl the web, create abstracts and categorizations for websites, and build search exactly as you want it.
The main limiter now is hard drive space (and to an extent, local compute) -- but right now it feels like the 70s again where the terminal into a remote server turned into building applications locally.
The number of times we've gone from cloud/server access via terminal to local compute back and forth is something that always makes me laugh a bit.
It's more of a pipeline than a back-and-forth. New abilities happen in the cloud first because they require specialized, higher capacity resources and then move towards being local as the resource usage gets optimized.
Outside insane GPU appliances, I really see cloud based things as a lock-in to subscription based offerings. The fallacy of always using the latest code isn't worth never ending subscription fees. I'll install it locally. I'll keep my data locally. I don't need to wait for things to upload/download. If there's an update that feels worthy, I'll purchased and install locally.