It may be possible to continue designing around 8-bit technology. But times have changed. Does it make sense – even economically – to stick to an increasingly limiting technology? And why risk being left behind? The move to 32-bit is inevitable.
If i were to make a "blinker" for e.g. a warning light I'd not spend two days getting through the configuration of an ARM, I'd be done way before the ARM was 'configured' with the whole project using a 4 or 8 bitter.

What is true is that the size of a project where you select a 32 bitter is getting smaller e.g. banking '51 would be totally ridiculous today.

I am not a luddite, of my last 5 projects 4 have been ARM and one '51, in all cases the choice was carefully made.

One reason for the BS above is that today's 'graduates' would not even consider "Blinky' without a RTOS.