I'd like to draw a comparison: a cozy wood fire versus central heating. In the right time and place (eg camping in the woods), a wood fire is both very practical and very useful. Meanwhile, most homes built in the past 70+ years in the USA have central heating (or are somewhere that doesn't need heating at all) and the benefits are quite obvious: automatic temperature regulation, supplied by a utility, and low or no local emissions. And yet, there will still be rural homes that are heated exclusively by a wood stove, located in the middle of the living room, whose iron construction stores and radiates heat well after the fire has gone out.
Do I bemoan individual homes that use a wood fire? No, not really. The reality is that a grand, overwhelming majority of people don't have wood fires anymore. Even when air quality is poor, prohibiting wood fires in a few rural homes isn't exactly what would clear up the air.
Now, it would be a vastly different story if city-dwellers all had wood fires. When every home in a neighborhood is building and burning a wood fire, the results are disastrous: horrific PM2.5 in the air, soot coating everything, substantially reduced energy efficiency, and mass logging just to keep the wood supply. A mole-hill quickly becomes a mountain of problems when it's at scale.
So to that end, I would very much like to see commercial-scale AI reigned in, as the external costs have already gotten out of hand. What they have built is more correctly called a wildfire, not a wood fire. But where does that leave small-scale AI/LLM users? They can weigh the cost/benefits for themselves, provided that they don't harm other people or resources in the process.
But that brings us back to a cozy wood fire versus central heating: at small scale, a wood fire struggles to heat an entire modern American home (ie 2500 sq ft; or 232 sq m). Yet central heating does it with ease. Who then will be interested in this endeavor? Probably only those with a love for the camping aesthetic, and other enthusiasts.
At this point, it has become more clear what the utility of small LLM models is, and they do pale in comparison to larger LLM models. If small LLMs are what sensibly survives into the future, then that's essentially a cap on their capabilities, given a want to avoid burning the planet to run anything larger. The only way out would be for substantial developments in the energy efficiency of small LLM models, but that's not where the interest is.
No one is seeking to build a more efficient wood fire.