You're missing the point. You very rarely need the biggest and "best" model. This is psychology and nothing more, people always want the "best" and don't often consider "good enough".
Small models are good enough depending on your task. That's the point. A model you can run on your phone or laptop is an incredibly useful tool for a lot of problems even though it isn't the "best" theoretically possible model.
You're missing the point: those small "good enough" models aren't monetizable and haven't been for months already. All of the value in LLMs is going to come from frontier models at a high cost to businesses/governments. It'll be the difference between next day air-mail of a contract and sticking a stamp on your christmas card to Grandma - nobody's making a profit on the christmas card.
Yep.
And firms will be kept in check with financials.
If your competitor starts using chinese models and delivers better earnings whilst you are spending more on american ones... hahaaha. Wait and see what happens.
You will be FIRED!
How often do you need the task to turn out harder than you anticipate and the small model unexpectedly failing to change the calculation?