Yes, but I can't imagine situations where I "have" to run a model when I don't have internet at that time. My life would be more affected with the rest of the internet than having to run a small stupid model locally. At the very least until the hallucination is completely solved, as I need internet to verify the models.
You’re assuming the model is purely for generation though. Several of the Gemini features are lookup of things across data available to it. A lot of that data can be local to device.
That is currently Apple’s path with Apple Intelligence for example.