"Baking in" a model into a chip is a bad idea because chips take 2 years to tape out and then you're stuck doing inference on llama 3 in 2026 when fable/sol are available. Every accelerator is a tradeoff between flexibility and performance and GPUs are already pareto-optimal
It depends when the good enough level hits. Pretty sure we are almost there for most common applications of AI.
Well we'll see those surplus chips being repurposed for toys then. Who wouldn't want a new Furby that can actually hold a conversation.