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I root for this, but runnign LLM locally disqualifies a lot of workstations, for example laptops with integrated graphics.

You can run it on a different machine. I've set up my desktop to host ollama, and use it from my laptop just fine.

Do you use continue.dev or privy with that setup?

I just use Tailscale to make it available on other machines. I use the interface through Emacs.