A few lessons learned:
1. small models like the new qwen3.5:9b can be fantastic for local tool use, information extraction, and many other embedded applications.
2. For coding tools, just use Google Antigravity and gemini-cli, or, Anthropic Claude, or...
Now to be clear, I have spent perhaps 100 hours in the last year configuring local models for coding using Emacs, Claude Code (configured for local), etc. However, I am retired and this time was a lot of fun for me: lot's of efforts trying to maximize local only results. I don't recommend it for others.
I do recommend getting very good at using embedded local models in small practical applications. Sweet spot.