I use, or at least try to use local models while prototyping/developing apps.

First, they control costs during development, which depending on what you're doing, can get quite expensive for low or no budget projects.

Second, they force me to have more constraints and more carefully compose things. If a local model (albeit something somewhat capable like gpt-oss or qwen3) can start to piece together this agentic workflow I am trying to model, chances are, it'll start working quite well and quite quickly if I switch to even a budget cloud model (something like gpt-5-mini.)

However, dealing with these constraints might not be worth the time if you can stuff all of the documents in your context window for the cloud models and get good results, but it will probably be cheaper and faster on an ongoing basis to have split the task up.