Yes, because we've seen that with other software. I no longer want a GPU for my computer because I play games from the 90s and the CPU has grown powerful enough to suffice... except that's not the case at all. Software grew in complexity and quality with available compute resources and we have no reason to think "AI" will be any different.
Are you satisfied with today's models and their inaccuracies and hallucinations? Why do you think we will solve those problems without more HW?