That push to fragmentation is in large part because of hard lessons learned from the problems of a monolith.
The answer is IMO somewhere in between. Microservices can get too tiny and thus the system becomes impossible to understand. However a monolith is impossible to understand as well.
The real problem is you need good upfront architecture to figure out how the whole system fits together. However that is really hard to get right (and Agile discourages it - which is right for small projects where those architects add complex things to mitigate problems you will never have)
The answer is IMO somewhere in between. Microservices can get too tiny and thus the system becomes impossible to understand. However a monolith is impossible to understand as well.
The real problem is you need good upfront architecture to figure out how the whole system fits together. However that is really hard to get right (and Agile discourages it - which is right for small projects where those architects add complex things to mitigate problems you will never have)