The 1st order conclusion of this is that it's good for AI providers because it reduces their costs.

The 2nd order conclusion of this is that it enables people to run some quite powerful models on just their 32GB Macbook and they'll no longer need to pay AI providers.
I think we're getting close to the point where local models are good enough for most people and I'm unaware of any kind of moat OpenAI/Anthropic has to prevent them from leaving. At least Google has an ecosystem around it so they can provide unique value that ties into those services.