Google doesn't have a good coding model. This is a HUGE problem. They don't need "larger more expensive models", they need a good coding model because it's a competitive advantage.
3.7 flash ain't bad. It isn't Opus or Sol, but it fits pretty well in the second tier.
Second tier models are like self-driving cars to the point where you question if they save any time. Sol can do a deep analysis and plan a large feature. Luna can mostly execute. There's a clear qualitative difference.
Competitive advantage why? Will it really make them more money? They already have Google Cloud.