It's a fallacy because the reality is often not that…in fact sometimes the reality ends up worse. (See "enshittification", a process whereby technology gets worse over time, not better.)
You’re again conflating the product offerings from the capacity of the technology. It’s like kinetic energy vs potential energy.
The real wait is for the cost in disk space, memory and electricity of pretraining a transformer to be something the equivalent of a raspberry pi can accomplish. Then all the style and design choices of the few current vendors goes away.