Yes, my comment focused on NLP research but the importance of university teaching has also taken a hit - not that I fear bullying, but now students can have a dedicated custom teacher with infinite time and patience and that can answer questions at 3 AM, and obviously that reduces the relevance of the professor. While the human interaction in in-person teaching still provides some exclusive value, demand logically should go down. Although don't underestimate the power of inertia - one could also think that small noname universities would go out of business when the likes of MIT began offering their courses to everyone online, and it didn't happen. I do think LLMs bring higher risk than that, and a shrinking will indeed happen, but maybe not so dramatic. Let's see.

Regarding science, if we leave it exclusively to corporations we won't get very far, because most corporations aren't willing to do the basic/foundational science work. The Transformers and most of the relevant followup work that led to LLMs were developed in industry, but they wouldn't have been possible without the academics that kept working on neural networks while that field was actively scorned during the 90s-2000s AI winter. So I think research universities still should have a role to play. Of course, convincing the funders that this is indeed the case might be a different story.