Conversely, there are way too many people who think that humans are magic and that it's impossible for AI to ever do .
I've long believed that there's a smooth spectrum between not-intelligent and human-intelligent. It's not a binary yes/no sort of thing. There's basic inert rocks at one end, and humans at the other, and everything else gets scattered at various points in between. So I think it's fine to discuss where exactly on that scale LLMs fall, and accept the possibility that they're moving in our direction.
And even if local small-scale models turn out to be optimal, that wouldn't stop big business from using them. I'm not sure what "it" is being referred to with "I hope it collapses."