I might imagine that even this cycle could change, if the resources necessary to support step 1 and step 2 are much lower. Which might mean step 3 isn’t as necessity driven.
Of course, it’s possible other things can drive step 3.
And frontier models are already a study in unusual levels of resources dedicated to step 1.
Very true, but if the company has raised VC funds, step 3 is inevitable. Even if the original founder resists making the product worse, the future execs won't blink an eye.
Open-source on the other hand, isn't profit-driven as much. The builder is making it for himself and for the love of it. Give me that bread maker 10/10 times. And yes, that bread maker might also start to chase profits and make the bread worse, but I can fork his product and be on my merry way if he does.