The flip side to that is it's going to be easier to self-host a coding LLM. That's free for the user (if they already have a good enough GPU) and it gives much better flexibility.
That's a good point, the large corporation model vs smaller specialized finetuned models are vying for dominance right now, I'm interested to see which paradigm we end up with.
Won't be winner takes all. The people who use local models will have requirements or desires that lean them that way. The rest will use the easier to stand up large corp offerings.
Only way this changes is if there is a very large performance gap between the two. Small ones just won't matter.