(See stable diffusion/llama/ chatgpt)
There will be businesses that actually make money on these technologies, and they will be research heavy (even a 5% improvement is a big deal) as things are still getting figured out.
I could see speed dropping back towards 2017 like rates, but I kind of doubt we will ever see an true ai winter like the 90's early 00's
The field is just too young with too many things as of yet untried, along with the fact that I doubt funding will dry up any time soon. (There are too many interests, from Nvidia wanting to sell more chips, to Microsoft wanting to sell more productivity, to defence, and political concerns between the US and China.)
Yes, it won't go on forever, but also this time seems qualitatively different from the past AI cycles. (Granted I was not alive then)
The field has been around since the 50s with various summers and winters, with each summer having people saying it's now too big to fail, with ever increasing resources and time being spent on it, only for it to eventually stagnate again for some time. If there is one field in computer science I wouldn't call "too young", it would be AI. The first "true" AI winters happened in the 1970s/1980s, and second one in the late 1980s. You seem to have missed some of them by a large margin.
It's the natural movement of ecosystems that are hyped a lot. They get hyped until there is no more air, and it goes back into "building foundations" mode until someone hits gold and the cycle repeats all over again.
I'm sure things will develop, but develop into flawless midjourney-but-for-video? literally only time will tell, its a fools errand to extrapolate
Since human brains during dreams (lucid or otherwise) can generate coherent scenes, and transform individual elements in a scene, diffusion based models running on cpu/gpus should eventually be able to do the same.
That the human brain is exactly equivalent in function to our current model of a neural network is a huge, unproven hypothesis.
Indeed technically that might not be possible due to probabilistic nature of these models and may require a whole different technology. But one thing for sure is that enough labour and capital is going into it so the chances are not little.