Fair. You can do mostly the same stuff from a 'normal' PC, as all the calls (right now) go to a data center somewhere.
You can't shift that locally unless users have the hardware. I expect things will shift gradually as 'AI PCs' offer it.
Thinking along the lines of large files, like movies or high res images, it would be much more efficient to process this locally than pass data to/from a DC.
Feels a bit like a chicken and egg scenario. You can't offer developers room to create local apps to utilize 'AI' if the hardware doesn't exist. As you say, it'll happen through many cycles - this is the first (and probably of very limited use, but we have to start somewhere).
Maybe I'm a little too forgiving on definitions, but that's my take.
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