The world could run on older hardware if software optimization was a priority

When in fact, the tweet is absolutely not about either of the two. He's talking about a thought experiment where hardware stopped advancing and concludes with "Innovative new products would get much rarer without super cheap and scalable compute, of course".

Interesting conclusion—I'd argue we haven't seen much innovation since the smartphone (18 years ago now), and it's entirely because capital is relying on the advances of hardware to sell what is to consumers essentially the same product that they already have.

Of course, I can't read anything past the first tweet.