As someone who has done traditional NLP work as at least part of my job for the last 15 years, LLMs do ofter a vastly superior NER solution over any previous NLP options.
I agree with your overall statement, that frequently people rush to grab an LLM when superior options already exist (classification is a big example, especially when the power of embeddings can be leveraged), but NER is absolutely a case where LLMs are the superior option (unless you have latency/cost requirements to force you to choose and inferior quality as the trade off, but your default should be an LLM today).
CV too for that matter, object recognition before deep learning required a white background and consistent angles. Remember this XKCD from only 2014? https://xkcd.com/1425/