Sora had all of the downsides, and attracted all of the scrutiny. Local-first is definitely the way.
i think it's clear cloud hosted is the actual future, which people have predicted for decades. it will never make financial sense to duplicate what you can get for cheap, because it's oversubscribed, with economies of scale and "if we let this run idle it's losing us money" pressure, for hardware found in a datacenter.
this has been the case for a long while now, and will increasingly be so as data centers buy up all the everything.
With open models, you have multiple providers competing on inference speed, quality, and price, leading to healthier market without lock-in.
"open weights" is the appropriate term.