What regular home workload are you thinking of that the computer I described is incapable of?

You can call a computer a calculator, but that doesn’t make it a calculator.

Can they run SOTA LLMs? No. Can they run smaller, yet still capable LLMs? Yes.

However, I don’t think that the ability to run SOTA LLMs is a reasonable expectation for “a computer in every home” just a few years into that software category even existing.

It's kind of funny to see "a computer in every home" invoked when we're talking about the equivalent of ~$100 buying a non-trivial percentage of all computational power in existence at the time of the quote. By the standards of that time, we don't just have a computer in every home, we have a supercomputer in every pocket.