I hope hardware becomes so cheap local models become the standard.
Best choice will depend on use cases.
Imagine having the hardware capacity to run things locally, but not the necessary compliance infrastructure to ensure that you aren't committing a felony under the Copyright Technofeudalism Act of 2030.
It will become like cloud computing - some people will have a cloud bill of $10k/m to host their apps, other people would run their app on a $15/m VPS.
Yes, the cost discrepancy will be as big as the current one we see in cloud services.