This would be strange, because all other technology development in history has taken things the exact opposite direction; larger companies that can do things on scale and outcompete smaller ones.

I don't think this has always been true.

Youtube allowed many more small media production companies - sometimes just one person in their garage.

Shopify allowed many more small retailers.

Steam & cheap game engines allowed many more indie game developers instead of just a few big studios.

It likely depends on the stage of the tech development. I can see Youtube channels consolidating into a few very large channels. But today, there are far more media production companies than 30 years ago.