Earlier quoted context omitted.
Speaking as someone who has built local-only apps (partially because I don’t want the hassle of maintaining a server): There are plenty of useful apps that run locally on a phone. You can even run a whole LLM on your phone. The shiniest and most popular apps are cloud terminals but the iPhone is actually a pretty darn powerful device.
Plenty of useful apps != general purpose computing capabilities. You are not allowed to run computations that have not been approved by Apple if you are using an iPhone. Yes, the hardware is powerful, but it is cryptographically locked down. It is physically local, but the control of the hardware is entirely non-local and 100% owned by Apple.
Also note that apps like Pythonista allow you to write programs that call arbitrary Objective-C APIs without permission from Apple. This means that you have a Turing-complete language running unsigned code that can do anything a signed app can do. Your programs do, however, execute slowly.