Open weight models remove most of the issues you list and require relatively affordable hardware like a MBP with 128gb of ram or even less.

Deepseek v4 flash is by any means comparable to SOTA from 6 months ago. It's more than good enough for AI-assisted coding and there are no reasons to believe that one year from now or so, they won't be even better and faster.

128 GiB MacBook Pro is like $8k! Thankfully, you can run local models on a $1,000 Pixel 10 Pro, which is still a lot, but slightly less insane.