But their market share can go WAY down, to the point where they become niche businesses. For example HP still sells VMS and HP/UX systems. These systems have not "gone away" but they have been relegated to niche markets.
All the arguments about smaller components being more expensive, are 100% blown away by economies of scale.
To address your argument about expansion: sure you needed an expandable computer back in the day when a motherboard had the CPU and the RAM and the keyboard controller and little else. But today motherboards come with all the standard peripherals on board so expansion is really not an issue for the majority of users. You also have to remember that those expansion slots are not free either; today connectors cost more than the peripheral chips that are plugged into them. Any peripheral with any kind of popularity at all is going to be incorporated into the motherboard.
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