Every use case of every customer doesn’t need more intelligence. I’m willing to bet that the vast majority will be perfectly fine running on “low intelligence” at a cheap price forever.

I for sure agree that plenty of current use-cases are solvable by non-frontier models.

However, you said “new versions with features that nobody asked for”, and I would prefer that you concede the point before shifting to arguing a new point.

What customers are asking for is smarter models. Because the tasks that only smarter models can solve are higher value, higher margin, than the tasks that non-frontier models can solve.

What are you talking about?

Prices of lowest tiers of models have fallen how much - 10-100x over the last two years.

And actually, the model quality you needed to pay for in the past, you can just run on device now essentially for free.