It's more complicated than that. Small specialized LLMS are IMO better framed as "talking tools" than generalized intelligence. With that in mind, it's clear why something that can eg look at an image and describe things about it or accurately predict weather, then converse about it, is valuable.

There are hardware-based limitations in the size of LLMs you can feasibly train and serve, which imposes a limit in the amount of information you can pack into a single model's weights, and the amount of compute per second you can get out of that model at inference-time.

My company has been working on this specifically because even now most researchers don't seem to really understand that this is just as much an economics and knowledge problem (cf Hayek) as it is "intelligence"

It is much more efficient to strategically delegate specialized tasks, or ones that require a lot of tokens but not a lot of intelligence, to models that can be served more cheap. This is one of the things that Claude Code does very well. It's also the basis for MOE and some similar architectures with a smarter router model serving as a common base between the experts.