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There was a question about AI and privacy. Don't remember exactly what it was but it was something like "What do you care the most about integrating AI into products" and most of the answers were about the privacy.
There are foss ai models that can work offline, so it's not completely out of the question to develop something that respects privacy. But IMO not entirely sure of that's the best use of resources, unless this doesn't slow down development of other improvements
Ollama seems pretty good. I've been playing with it recently and when combined with openwebui, it makes pretty nice local chatgpt. But I agree, there are more pressing issues I would like to see fixed/implemented.