This seems too pessimistic? Moore's law is a thing. Price reductions with better quality have been going on for a long time in computing and networking.

We're also seeing significant price reductions every year for LLM's. Not for frontier models, but you can get the equivalent of last year's model for cheaper. Hard to tell from the outside, but I don't think it's all subsidized?

I think maybe people over-updated on Bitcoin mining. Most tech is not inherently expensive.