Yes, because transfer learning works. A specialized model for X will be subsumed by a general model for X/Y/Z as it becomes better at Y/Z. This is why models which learn other languages become better at English.

Custom models still have use cases, e.g. situations requiring cheaper or faster inference. But ultimately The Bitter Lesson holds -- your specialized thing will always be overtaken by throwing more compute at a general thing. We'll be following around foundation models for the foreseeable future, with distilled offshoots bubbling up/dying along the way.