> Gaming is maybe the one mainstream application where local compute is important

While it isn't as mainstream as gaming, music production also requires a lot of local computing power. Even with ridiculous bandwidth, having a high fidelity sample streamed elsewhere, processed, and streamed back to you would be extremely slow. Not to mention, as a keyboard player or drummer, the latency would be atrocious if you tried to play a synth that was being computed in the cloud.