What if the harness and loops get sufficiently better though? CC is using haiku for code-base gripping and such, you don't see a local commodity model being "good enough" for the 80% case when matched with better harnesses and tool calls?

honest question, i'm very interested in this, but too casual as of now to know any better.

vast majority of average users don't use llms for coding, and for those purposes, local llms with low param count are a far cry from SOTA models.