They have the volume as well, if you do carve out a niche they’ll just add it and roll over you.

That’s held for decades though I think it only really worked when computers where doubling in speed every 12-18 months, for a while they scaled horizontally (more cores) over radical IPC improvements so we might see the rise of proper co-processors again (but nothing stops the successful ones getting put on die, like Strix Point is already heading).