Your arguments are totally valid, niche tools will be alive and well. I think my take is that even in niche tools we will see a lot of generalization and more flexible niche tools will eventually win.

The problem is that software can be too flexible. A great example is companies ending up using Excel as a load-bearing database, relying on a bunch of incomprehensible macros to execute critical business logic.

Sure, it's flexible, but are they really better off than a competitor using properly-engineered one-off software? In the end, is there really a difference between software development and flexible-tool-configuration?