Something not being intuitive doesn't make it untrue - if AI makes engineers 10x as productive it means that we need 1/10th the engineers to produce as much software as we do - it might induce demand but demand might not keep up with the production. SW Engineering might become a buyers market instead of a sellers market.

One example I mentioned is SaaS whose value proposition is that it's cheaper than to hire a dedicated guy to do it - if AI can do it, then that software has no more reason to exist.