No, we're not going to see the end of local storage, in 1989 a Seagate ST-225 was 230 dollar for 20MB and a 4096 80MB drive was 630 Dollar and if you roll back the inflation you'll see that this was a pretty hefty price.. same with computers themselves, they were much more expensive, a high end IBM XT was 5K.
We'll adapt and get used again to higher prices, safe up a year or maybe more before buidling new machines, buy refurbs, for most people cloud storage is indeed not suitable for their needs, gamers are the ones hit hardest because they require the more high end components, for non gamers it's much different, a Dell, HP or Lenovo will be fine and not as expensive as trying to build a machine yourself.