The Vicuna headline was def an overreach, although the main text admits pretty readily that their performance test (asking ChatGPT to evaluate quality) is not rigorous [1]. I'm sure that has set a lot of people pontificating about AGI with tiny models, but I can't imagine anyone who has worked directly with fine tuning having that impression.
The comments I see here are not about that. They are about small models succeeding at specific tasks, which is affirmed by this paper. Most applications of LLMs are not general purpose chat bots, so this is not bad news for most of the distill/fine tune community.
[1] https://lmsys.org/blog/2023-03-30-vicuna/