Maybe. Doesn't change the fact that software will be more commoditized.
If software switching costs get close to 0 [because data is owned and can be opened by any other app], pricing pressure will get intense. Investors love cloud SaaS because they can rent-seek and extract margins of >80%. It's unlikely that apps that do not own and lock-in customer data can rent-seek to such a degree. If they do that, users will switch to the next best solution.
The hope is that the markets are large enough that niche apps can carve out a healthy revenue with a more personal, "homegrown" experience. This is where my product lives, and so far it's worked well enough.
Also, switching cost is never zero or even close to it. The user still has to click a button. I know it sounds like I'm being facetious, but coming from a large-scale B2C industry, a single button click is an enormous obstacle.
The internet is rife with stories of hobbyists who would love to give adobe $500 to just buy their software outright. Many Adobe competitors offer exactly this!
It's not like many professional services manage the long-lived part, either, is it?
I have much more confidence in my WebDAV server still being around in a decade than pretty much any cloud-based service.
If somebody is taking money for something, it isn’t really a hobby, it is a job. It might be a poorly paid one, but they still have an ethical obligation to their customers, to meet some standards of merchantability and provide some level of customer service.
But if you mean, “apps that hobbyists use” then that makes more sense. There’s nothing wrong with producing a toolkit that a hobbyist can use to write their own apps of course. It is like producing hand tools—you have an ethical obligation to make sure the tools themselves are reasonably free of defects but of course you don’t have to provide customer support for the treehouse!
Distribution (specifically maintenance) becoming cheaper will enable those people to compete/provide enough value to customers that larger companies face downward pricing challenges.
Users will refrain from paying a subscription if their app version works and they don't need updates. The good old buy-a-license with 1 year of updates will likely make a big comeback. Local-first software, at least in lix universe [0], does not have fixed recurring maintenance costs like running servers. The elimination of fixed recurring maintenance costs will lead to a proliferation of "hobby apps" that are undercut by price/make it free altogether.
[0] https://github.com/opral/monorepo/blob/main/lix/README.md