Larger, yes, absolutely. Better? Right now it seems that bigger is better, but if we are thinking about long term future, it's not obvious that there isn't a point of diminishing returns with regards to size. I can also imagine a breakthrough, where models become much smaller, with the same or better capabilities as the current, very large ones.
You are always going to get the same scaling laws in model size regardless of what else you do, so the same degree of improvement seen now relative to the smaller models will be achievable in the future. Yes, small models may be on par with previous generation large models, but the same is true for processors and you don't see supercomputers going away. It's the same principle.