The argument would be that for simple organization, dividing things into independently releasable components is less simple than just having one app. I think that's what most simple organizations do, no? Why do you need the complexity of independently releasable components for your simple organization? Now you have to track compatibility between things, ensure what version of what independently releasable thing works with what version of what independently releasable other thing, isn't that added complexity? Why not just have one application, isn't that simpler? You don't need to worry about incompatibilities between your separately releasable things -- every commit that passes CI on your single repo means all the parts are compatible (sans untested bugs).
Usually it stops being "simpler" at a level of organizational complexity or code size where it becomes a mess. The "monorepo" is the attempt to do what everyone was just doing anyway for simple orgs with simple codebases, but keep doing it at huge sizes.
The monorepo vs many-repos discussion often hits upon so many implied factors, but it's only really about how source code is stored.
It doesn't necessarily indicate much about the deployment model. You can have many separately releaseable things in one repo, and you can have one independently releaseable thing based on the sources of many repos.
Monorepos enable, but don't require, source-level co-evolution. Or maybe a better way to put it would be: many projects can have a shared history. Many-repos require independent source-level evolution. In the open source world there is no real choice: every project wants to be independent. The authors of a given project can do what they wish with it.
One weird thing to think about is that monorepos can accomodate many-repo style workflows. You can still develop projects completely independently within a single repo. Of course you can store separate projects on separate revisions, which would be weird. An even weirder approach would be having all projects in a given revision, but have totally independent builds, no single-version policy, no requirement for atomic compatibility, et cetera. These are all things that are often imposed for monorepos, but that are also not requirements. Basically, you can treat each project as independent even if their sources are stored together. I don't think there are any reasons to actually do this, of course.
Usually it stops being "simpler" at a level of organizational complexity or code size where it becomes a mess. The "monorepo" is the attempt to do what everyone was just doing anyway for simple orgs with simple codebases, but keep doing it at huge sizes.