Exactly the point though. In the 640KB days there was no subscription to ever increasing compute resources as an alternative.
Well, there kinda was - most computing then was done on mainframes. Personal / Micro computers were seen as a hobby or toy that didn't need any "serious" amounts of memory. And then they ate the world and mainframes became sidelined into a specific niche only used by large institutions because legacy.
I can totally see the same happening here; on-device LLMs are a toy, and then they eat the world and everyone has their own personal LLM running on their own device and the cloud LLMs are a niche used by large institutions.