There is exactly zero chance Apple lets open, unconstrained models run on iPhones when they get powerful enough. We are talking about a company that doesn’t allow apps that contain bad words. People holding out hope for this are delusional.
We're in a time where devices are becoming more capable and developers are figuring out how to do on-device inference using less resources.
The companies that spent a fortune on AI data centers might as well have built a huge pyre of money for all the "moat" they built with it.