"Ability to literally destroy the other entity" is not a necessary or even typical feature of arms races.
It seems that the frontier labs believe they're participants in a winner-take-all market. Therefore they're in "an arms race."
Winner-take-all markets do not require that the winner literally destroys the losers, but only that the winner enjoys disproportionate returns compared to their actual superiority.
Whether or not this is actually true is TBD, but I think you're naive to think the frontier labs do not believe this to be true.
As far as naivete, wouldn't it be more naive to take their EA claims at face value, rather than the more realistic assumption that they like money?
You're pretty explicitly saying that dominating the competition is not the type of "destruction" necessary to qualify as an arms race.
> As far as naivete, wouldn't it be more naive to take their EA claims at face value, rather than the more realistic assumption that they like money?
Huh? Greed is – quite obviously – the major driving force behind the arms race. That is not a mitigation whatsoever.
> Whether or not this is actually true is TBD, but I think you're naive to think the frontier labs do not believe this to be true.