Suggesting otherwise has become an extraordinary claim requiring extraordinary evidence.

VibeThinker 3B constitutes extraordinary evidence, IMO. The first such evidence I've seen myself. Very small model, very low literacy, almost no world knowledge, but it is as good at math and logical reasoning as models a hundred times larger.

The Bitter Lesson is a valid and trenchant observation about how about we got here, but I think it's a mistake to assume it tells us very much about where we're going. Too much has changed recently and is still doing so.