Why are people still paying monthly AI subscriptions?

I’ve been working on my local AI setup, and honestly, I'm starting to wonder why so many people are still spending $20 to $100 per month on tools.

Here’s what my local model and setup can do right now:

- Generate full websites and landing pages that are clean, modern, and usable

- Conduct real research with web access

- Create images and marketing materials

- Write high-converting copy, including emails, ads, scripts, and SEO content

- Automate workflows like sending emails, handling files, and generating reports

- Track data such as sales, analytics, and social media statistics

- Run multi-agent systems that work together on tasks

- Learn from past interactions using persistent memory

- Improve tool usage over time and get better at completing tasks

- Connect to tools like browser automation, email, file systems, and APIs

- Operate entirely locally without API fees, rate limits, or privacy issues

- Upload files and assets to my website.

And the craziest part is, once it’s set up, it’s almost free to run.

I understand that hosted models are easier to use from the start, but local models are becoming extremely capable, especially with the right setup, like LM Studio and MCP servers.

So I’m genuinely curious:

- What keeps people on monthly AI subscriptions?

- Is it convenience, performance, or a lack of awareness?

- Or is local still too complicated for most people?

I would love to hear real opinions. I’m not trying to criticize; I just want to understand where the gap still exists.