I think this is at the moment the practical limitation to using AI for everything (and what the coding agents themselves also optimize for to some degree, or it's the slider they can play with for price vs quality, the "thinking" models being the exact same, but just burning more tokens).

This seems like a perfect use case for a local model. But I've found in practice that the system requirements for agents are much higher than for models that can handle simple refactoring tasks. Once tool use context is factored in, there is very little room for models that perform decently.