I was one of the biggest proponents of microservices, going so far as to traveling around the world spreading the gospel of microservices keynoting large tech conferences. I believed that microservices were the best solution to scaling large teams of developers, so that small teams could work on small problems, where the API was the only contract between them.
But even then I cautioned that the overhead made it not worthwhile for small teams -- that it was a solution to the coordination problem for large organizations. And that Google was not a counterexample because they had spent so many resources on their monorepo tooling.
But there is a new factor in town that changes the calculus:
AIs can grok monorepos much easier than a cluster of microservices. AIs change the calculus here. They allow the developer to work successfully in even the largest monorepos, and the AIs themselves will give better results when all of the code is in one place.