A major point of components is having a single place where you can change design and behavior across your entire codebase. With LLMs you can with very good accuracy tell them to change the look of "all buttons that are confirmation buttons in modals but not in the login modal". Doesn't matter if there are 10 such buttons or 1000, it'll take a few seconds for them to accomplish it.
I'm slowly forming the opinion that nowadays having copy-and-pasted "components", with their whole HTML just repeated over and over, is now a much less worrying thing in a codebase. Even a bloated CSS can be quickly fixed by a LLM.
And like you said: you eliminate the build phase entirely and frontend development ergonomics goes back to how it was in the early 2000s.