> Say you're a studio making a movie and you want to hire, say, 5 writers, 25 actors, 10 special effects editors, 3 stuntmen, etc. You'd prefer to get them as a package because it's easier for you and you have a better chance of them working well together.
This is called a production company and it has existed as a concept for a long time. Amblin is Spielberg's production company, Bad Robot is JJ Abrams', Syncopy is Chris Nolan's, etc.
It's just another layer of abstraction... ok now the production company has given the studio a nice package of talent to sign a contract with, but how did the production company create that package? By signing talent, which means there's still a role for talent agency. They're just negotiating with the production company instead of a studio.
What big talent agencies tried to do was collapse those two layers--production company and talent agency--into one. They wanted to do this because production is lucrative, especially when you don't have to negotiate with talent! Because you supposedly "represent" them.
> The interchangeable cogs that don't really need an agent end up with an agency that's more like a staffing firm.
I mean, I'm sure this maps to how the big companies think about staffing, but I doubt you'd find many people in the film industry who think of themselves as "interchangeable cogs". This fundamental disagreement about value is why contract negotiations happen in the first place.