>> So nope, beyond minimal classification and such, on-device isnt happening.

This is a paradox right? Handset makers want less handset storage so they can get users to buy more of their proprietary cloud storage while at the same time wanting them to use their AI more frequently on their handsets.

It will be interesting which direction they decide to go. Finding a phone in the last few years with more than 256gb storage is not only expensive AF, its become more of a rarity than commonplace. Backtracking on this model in order to simply get AI models on board would be a huge paradigm shift.