The privacy war has been lost in two ways (at least) 1) Running locally lobotomised models makes no sense; 2) as someone said here, the Gov will declare local AI a felony. And they will enforce it.
So those "many people" will buy V8 cars limited to V4 and declared illegal to drive without registration and license, even locally in your own yard, and they may go to jail if they attempt to activate other 4 cylinders.
Oh, wait ... isn't it how car laws work now? ;-)