I don't see the case for DRM protected local models on either side.
The consumer has access to free and open models for local use.
The supplier has better control and wider market to serve running the models in data centers.
Only way I can see encrypted models being widespread is if they are bundled as part of a software package (OS/Browser/etc) and not sold as the product.
There's good open weight models for now, labs could stop releasing them for whatever reason (assuming "good model" is a moving target).