The good local LLMs are also loss leaders, a company spends a lot of money training a model then gives it away for free in the hopes they can eventually pivot to an actual business model. The work being done with local LLMs seems to take for granted that Mistral and co will just keep shoveling investor money into the furnaces forever to keep the free LLMs coming, and there is no contingency plan for when that money runs out.

Likewise local image generation is almost entirely dependent on the charity of one company, and per the OP that company is on the verge of going broke.