The pricing will go down once the hardware prices go down. Historically hardware prices always go down.

Once the hardware prices go low enough pricing will go down to the point where it doesn't even make sense to sell current LLMs as a service.

I would imagine that it's possible that if ever the aforementioned future comes to pass that there will be new forms of ultra high tier compute running other types of AI more powerful than an LLM? But I'm pretty sure AI at it's current state will one day be running locally on desktops and/or handhelds with the former being more likely.

Are Hardware prices going down when the next generations get less and less better?

Hopefully we'll get some real focus on making LLMs work amazingly well with limited hardware.. the knock on effect of that would be amazing when the hardware eventually drops in price.