Yes, there's no doubt that in the 40 years since the LS3/5a was introduced, there have been many many small speakers and systems that can do many many things better than they can, especially in the area of power handling, ultimate loudness and even fidelity to some extent. In some cases, active power and crossovers help small speakers achieve a fantastic sonic ability that passives can't match. The LS3/5a, along with the ADS L300, Visonik David, and the M&K satellite, perhaps along with the Fried B series really set the small speaker world on fire.
The big problem with the cost argument is that for a long time the LS3/5a was pretty available for less than $800 up till the early 2000's, in many cases, still much lower. With the rise of the Internet, ebay, and the demand from the Far East, prices rose in fits and starts, and much flowery praise and even mythical status was heaped on the LS3/5a with particular makes and models magically given prominence. Is it merited? Maybe so, maybe not, but because of the design and manufacturing methods, most of them will deliver the specifications, notwithstanding some of the known aging effects (which in some cases can be addressed via the crossover values).
If we removed cost, the LS3/5a is still a pretty effective and honed design, and the fact that there are so many competitors in that size range suggests there's a lot to be said for folks who want excellent sounding small speakers. That there are many who coattail on the LS3/5a name, dimensions, design layout and cosmetics shows some makers to be more copiers. Yeah, I'll get flak for that, although the Spendor and Harbeth small units are very good derivatives in their own right.