I don't think there is a dichtomy. It's always about smartly leveraging available resources. The problem with modern development perhaps is then that there are these tempting high level orthodoxies that often obscure the core matter at hand. Ie. focusing on some pointless candied abstract object interface rather than focusing design efforts on data flow and the datastructures and algorithms used.

The need for low level optimization has most definetly not vanished. When program data fits into local ram the bottleneck moves into cache optimization.