Of course there will always be larger flagship models, but if you can count on decent on-device inference, it materially changes what you can build.
I'm making some assumptions about what they're saying, but it seems clear they have no idea what they're about and that they're betting their competency on this technology.
Meanwhile, this year Apple bumped the base of their Mac lineup from 8GB to 16GB RAM, and the iPhone 17 Pro ships with 12GB. The Neo is at 8GB but is a brand new product tier which is not comparable to any past model.
To me the Neo is an exception, and doesn't represent the core Mac lineup, which is all at 16GB+ of RAM. If you're developing pro software that would rely on an on-device LLM, you probably wouldn't be targeting the Neo anyway.