I'm not saying that it is impossible for a more advanced model and training paradigm to outperform a larger model, what I'm saying is that if you leave everything the same except model size, the larger model nearly always outperforms the smaller one. This is intuitively true if you consider that you can fit in the smaller model + extra parameters into a larger model. There are some cases in which it doesn't work due to dataset/model size incompatibilities leading to overfitting, this is mostly covered by the neural scaling laws.
Based on a quick cursory glance at your example: Better data + better technique led to a better result with less parameters. Would you assume that then scaling both the dataset and model once again would lead to even better results? If you haven't fully encompassed the underlying distribution with datapoints, intuition says yes.
What I wanted to initially highlight was actually something slightly different: Specifically that people keep trying to "outsmart" optimizers by either fully hand-crafting solutions or skewing existing machine learning algorithms via additional tricks that are supposed to encode "human intuition" or something similar (to be fair there are ways to do it correctly). These all tend to fall short in a few years simply due to "line go up" being stupidly effective (compute getting cheaper, more training data being available, better optimization strategies, better architectures) [0]
Specifically this idea of small fine tuned LoRA models falls into the trap quite often: People assume you can beat the big, slow, general purpose LLMs with a small highly specialized model that has been fine tuned on the "good" human intuition of your special inhouse dataset.
LoRA can do great things, but it is often misunderstood what LoRA actually does.
0: http://www.incompleteideas.net/IncIdeas/BitterLesson.html