It was the same with cloud and software as a service. We underuse the power of our local machines and pay high cost for modest resources that are bandwidth constrained for most users.
People long ago stopped buying computers and started using Saas on their mobile devices instead. Ask HP.
One consequence has been lower power requirement for local machines. This is partly why a 2015 MacBook is still perfectly serviceable for basic use in this day and age.
The AI boom first reversed the trend, to now try to get back to that cycle.