I've read all the comments here, many of which contradict my points. I used to agree with those ideas but then tried to sell LLMs to customers. My takeaway is that customers will pretend they care about privacy and needs for on prem installations, but they will, at least right now, go with a vendor that tells them their data is protected and not investigate the truth of that.
Zoom got away with it and still does and no one got fired for using zoom.
I'm happy to have a debate with someone that has successfully sold those ideas to a customer, but I'm skeptical until then.