Indeed, some stories are meant to be told only by a small number of episodes, not to be rushed in a movie or dried to the bone with multiple seasons. The most famous being The Queens Gambit (2020), Band Of Brothers (2001) or more recently Adolescence (2025). But what about the more usual format of tv shows, that require viewers attention through many seasons? This more traditional format presents more risk for the producers, such as production blows that fluctuate between each season, the casting that can alter the rendering of the series or a possible important drop of the average quality. A mini-series corrects all its errors in addition to being easier to produce. You could say that a limited series combines the long organized storylines of the series with the easier production of a film.
However, a phenomenon seen several times over the last decade, mini series which are so successful that their studio transforms them into multiple season series, more precisely into anthological series where the main plot stays the same but most characters and setting change. It happened with The White Lotus (2021) at HBO, Fargo (2014) on FX and better known Monster (2022) on Netflix. This mix of concepts is very successful, which seems to be the best TV format from a financial point of view. Concerning actors, starring in a mini series can be as rewarding for them than to star in a movie but it presents much more opportunity to show their talents just like Anya Taylor Joy in The Queens Gambit or Margaret Qualley in Maid (2021). Also, the anthological series offered way more roles since it changed its cast every season.
Offering new options for viewers and a better way to express stories that are not suitable for a movie
So to clearly answer the question, no, the limited series are not going against regular TV series, they are just offering new options for viewers and a better way to express stories that are not suitable for a movie or a TV show. Many studios and streaming services have understood the potential financial value of this concept which explains the shift of their ratio production, but remains an important opportunity for actors and producers.