That's the usual response, along with "you can't compete with free". But, look at how much money the frontier models are printing, it is obvious that the bell curve of usefulness is still centered around them.

Let's also not forget that even the open models are not getting smaller, they are getting larger. Of course, you can distill them down into something that will fit on smaller compute, but at the end of the day, the data centers of compute, still play a huge role.