As Steve Jobs famously put, Google has great engineers and awful products. Or something like that. Anyways, even if they do have the better technology I can see infinite ways they fail to produce a convincing product. I can also see many ways where they succeed and become even more dominant than they are now.

Time will tell.

Models are inherently more portable than the Google index. Think of Stable Diffusion, anyone can generate images on their own computers. When we get to the SD moment for text, then what will Google do? They can have better models, but people can have decent models as well, loyal models, that maintain privacy.