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.
The difference is computers post text terminal are latency and throughput dependent to the user. LLMs are not particularly.