Just as with the open source movement, there needs to be a business model (and don't forget that OSS is a business model, not a technology) that competes with the old way of doing things.
Getting that new business model to work is the hard part, but we did it once with open source and I think we can do it again with cloud infrastructure. But I don't think local-first is the answer--that's just a dead end because normal users will never go with it.