This assertion needs some support for those of us that don't have a macro insight into the industry. Are you seeing this from within FAANG shops? As a solo developer? What? Honest question.
I anticipate that once I have some more complex agentic scaffolds set up to do things like automatically explore promising directions for the project, then leaving the AI system on overnight becomes a necessity.
I also have Claude Cowork automations running constantly. As-is, I can't shut down my laptop, and it gets frustrating when my laptop is in my backpack all day because of commutes or travel.
Cloud starts to matter when you want to (a) run a swarm of agents on multiple independent tasks in parallel, (b) share agents across a team, or (c) not worry about keeping a machine online
Other than that, I agree with what you said. I don't know what the tradeoffs for local on-premises and cloud agents are in terms of other areas like convenience, but I do think that scalability in the cloud is a big advantage.
My efforts will be in improving agentic requirements gathering and assessment.
Obviously cloud is better for making money, and some kind of VPC or local cloud solution is best for enterprise, but perhaps for individual devs, a self-hosted system on a home desktop computer running 24/7 (hybrid desktop / server) would be the best solution?