[Snax]

Well I think the issue of degradation is one of bulk statistic data. I.e., degradation is measured at pack or module level, not individual cells. And due to variances in materials and manufacturing, some cells just aren't as up to the task as others, but can impose a significant impact on the performance of neighboring cells they are grouped with. There's an entire web forum dedicated to DIY powerwall building, and recovering well used cells with good capacity is a significant part of making it cost effective.

Most packs they recover the good cells from have been hobbled by one or two cells that couldn't hold up.

So in that respect, I think modularity does make sense, but cell production quality also plays a huge factor. Tesla is obviously shooting for using the highest quality cells they can. Other manufacturers may not be as picky, so their results are subject to higher variances.

What I believe we will see developing is not just more compact and lighter weight cells coming to the market, but better consistency and higher reliability for the cells that are produced. I.e., improvements in tech will be a bit of a factor, but quality control of cells will ultimately make or break a break a vehicle platform.