Yep. It's hitting limits because models have effectively reached the logical endpoint of how "precise" their outputs can become. In order to overcome this they need to either a) get excellent at outputting and working with massive codebases (10+ million loc) since a singificant % of systems simply cannot be done in less than that (the language itself isn't expressive enough) or b) reach the next stage of intelligence where the models are somehow able to output sequences that can solve vast complex problems with a very narrow output. Option b isn't really possible (various statistical/computational fundamental limitations forbid it) and option A is _insanely_ expensive. Which is why all of the demos the frontier labs have been pushing out are either really impressive one shot demos where the model is able to take a concise input and produce something great on its own, or very long running internal sessions where they claim to do something vast with minimal oversight (NavierStokes, C compiler, Bun rewrite).
Totally disagree. Newer models are doing much more advanced things in domains like math, programming, and cybersecurity.
I don't see why a company charging more for less is a surprise or would lead to thinking that AI models have reached their limits. Thats an incredible claim and it would need incredible evidence. Astra is much more capable than Luna. Luna being 'good enough' for most of my daily work just shows how strong Luna is, not that Astra isn't much more capable.
As models get more and more capable, they will only appear to be at the extremes. You'll need to see them solving more Millenium problems to notice a difference as the tide is continuously raised for all models as well.