I can't speak for others but IMO the only reason to run models locally right now is privacy - i.e. you don't trust any of the cloud providers to not look at your prompts. Price-wise the market is extremely competitive and cheap model serving favors large scale so anything that can be run locally can be run cheaper in the cloud. But if privacy is important, then it's important for everything, including traditional chatbot applications, which kinda do require interactivity.