That's a fair point - you're talking about data security (not sending code to third parties) and I was talking about output quality security (what the model generates). Two different dimensions of "secure" and honestly both matter.
For side projects I'd probably agree with you. For anything touching production with customer data, I want both - local execution AND a model that won't silently produce insecure patterns.
I think you are deluded if you think the latter does not happen with hosted models.