The goal of web hosting is to provide low latency wide availability to many users.
AI in this context has a very different goal as a tool for individual users.
You wouldn't say that hosting instances of Photoshop on servers and charging for usage is a long term viable business would you? Even if current consumer computers struggled to run Photoshop.
I don't see an issue with the comparison, I don't think it is meant to be a 1 to 1 or anything, just an illustration of how consumers are overwhelmingly lazy.
I'd take issue with the statement that it is for the paranoid, but I guess it might be a defense mechanism because of course i am interested in local models. If my new workflow is going to be dependent on 3 companies, I'd prefer if there is a light at the end of the tunnel that breaks us free.