Sorry, I am just gonne dump you some links from my bookmarks that were related and interesting to read, cause I am traveling and have to get up in a minute, but I've been interested in this topic for a while. All of the links discuss at least some usecases. For some reason microsoft is really into tiny models and made big breakthroughs there.
https://reddit.com/r/LocalLLaMA/comments/1cdrw7p/what_are_the_potential_uses_of_small_less_than_3b/
https://github.com/microsoft/BitNet
https://www.microsoft.com/en-us/research/blog/phi-2-the-surprising-power-of-small-language-models/
https://news.microsoft.com/source/features/ai/the-phi-3-small-language-models-with-big-potential/
except we already figured out how to encode images (or any file) as text when E-Mail was created. That is how images in E-Mails, attachment or embedded, are done. I can easily imagine a userJS script that will render them in the browser, but even if not you just copy the text and decode.
Ah... so you're guaranteed to have a dark CSAM subculture on there at some point.
As if that has ever stopped anybody. See all the people that got caught for sharing it on the clearnet. Or on Signal, Telegram or similar, where you have to enter your phone number, which is personally tied to you.
All in all - Great way to adress the concerns, by admitting they are in fact possible. "Hurray crypto" or whatever.