Local LLMs are awesome. Hopefully the way things go, in a few years everyone will have a local LLM that works for them, rather the bigcorp that made it. But it feels like cope to assert that cloud LLMs are dead.
Right now, the cloud-LLMs have big and IMO growing advantages. Cloud-LLMs are better at utilizing GPUs, economies of scale drive their serving cost down, they have the advantage in ability to monetize (like SaaS has the advantage over desktop apps), and they'll always have the most capable models. The question is whether the advantages of local LLMs in terms of personalization and data soveignity is worth it to consumers. And we saw what choice consumers made last time around, choosing centralized SaaS companies rather than a more distributed web.