These days I think that's actually where everything should start off. With a good implementation of this you can transition relatively painlessly to a distributed system, and in the initial phases the simplicity of the build/test/deploy cycle massively lowers the overhead compared to a microservices approach while the strong isolation of domain logic gives you the ability to reason about changes to your domain not affecting other areas of the system.
Having worked in both small companies with terrible monoliths, small companies with terrible microservices, big companies with terrible monoliths and big companies with semi-decent microservices, and then implementing a modular monolith myself, I've seen enough to know that it's a solid, solid starting point. Most companies are pretty small, and the difference between an engineering org of 40 engineers trying microservices vs an engineering org of 4000 engineers doing microservices is on such a different level that people who haven't experienced both likely can't appreciate the data point that they're missing.
I love the strong isolation that microservices provide, and they can be super beneficial, but done at the wrong scale, the wrong level of technical maturity, or the wrong time and they're a huge drag. By the same token a monolith that grows too large for too long is equally a drag, but it's one that's exponentially more tolerable in an engineering org of 40 engineers than it is an engineering org of 4000 engineers. The key thing isn't which architecture you pick, it's the ability to be able to transition and adapt at the right point in time. Modular monoliths buy you this opportunity at a fraction of the price and for much less risk.