Absolutely right... I used to use Pi Zero W's for IOT projects. I had several of them around my house running sensors, rgb lights and the like. Now I can do the same thing with a much smaller device like an ESP32. Setting up a device that changes light colour based on time can be done with a €3 esp8266 flashed with WLED. For other projects I will use the beefier ESP32-S2/S3 or the Pi Pico Microcontroller.