Is there a market for on-device AI cutout apps when iOS already lifts subjects for free?

Honest question from a solo iOS dev, not a sales pitch.

I built an on-device AI cutout app (Core ML + Metal, nothing uploaded to a server). I launched it recently and traction has been quiet — few users, no paying customers yet. Before I keep investing, I genuinely want to understand whether this category has a market, or whether I'm solving a problem people already get for free.

The tension I keep running into: iOS already lifts subjects out of photos for free, and it's decent. My bet was that a dedicated app could win on three things — fully on-device (your photos never leave the phone), finer hair/edge detail than the built-in, and pro extras like layers and layered PSD export. But I'm no longer sure those are reasons people would actually pay for.

So I'd love blunt feedback from this community:

1. Do you see a real quality gap between a dedicated matting app and the iPhone's built-in subject lifting, or is "good enough" already free?

2. If you'd pay, what specifically for — hair/edge quality, batch processing, layers/PSD, or privacy?

3. Who is the actual buyer here: e-commerce sellers, designers, sticker/print makers, or privacy-conscious users?

4. Is "no upload / runs on-device" a genuine reason to choose an app, or a nice-to-have nobody pays for?

I'm not asking for upvotes — I'm asking whether I'm building something people want, and what I'm missing.

Happy to share what I've learned either way.