An easy counterargument is that the frontier models are swallowing all of the attention and money because they currently don't have a constraint of demonstrating that their value exceeds their cost. Take that away and it might turn out that cheaper models that are "good enough" and can be profitable are the more attractive route.
> they currently don't have a constraint of demonstrating that their value exceeds their cost
There is no loyalty in AI. I can switch to another model at near zero cost. They absolutely do have to demonstrate value. The concept of "good enough" is a misnomer because we're talking about putting these products into the hands of people who need to generate value from them.
Well said, they're competing on marketing rather than merit. Everyone defaults to the frontier instead of exploring more optimal options