They're not negated, smarter is smarter, but you have to reach deeper in your pocket. I think this will happen more and more - the smartest models get more expensive. But it won't matter - the current models we have today will get cheaper and can still be used for what they're used today.
Yet people don't use old models through the API much, because changes in benchmark space dont map linearly to changes in utility space. An improvement from 98% to 99%, which is 1pp, might be 2x as valuable for some application. Also benchmarks will asymptote no matter what, that's baked in.