You can replace this with "container" and "docker", and it turned out exactly or similar to how you predict. However, there is nothing with a big moat that Huggingface is offering. If they overeshittify, competitors will rise up.
Late in the "enshittification cycle", competitors do rise, but they're usually under-resourced. So you get a overly-monetized primary product and a bunch of "never quite there" competitors. That's overall worse than at the primary product's "free beer" phase.
The most likely successful entrants I can imagine are big tech. They’ll either build or buy the best competitor. And they all already have data centers ready to go
Similar to GitHub which I imagine they want to emulate. Sure there are other public code repositories but most people find GitHub good enough to not bother looking at options
