presumably this also means the relative value of seniors is now increasing, as the pipeline to replace them is smaller.

its like how the generic "we take anyone" online security degree has poisoned that market -- nothing but hoards of entry level goobers, but no real heavy hitters on the mid-to-high end. put another way, the market is tight but there are still reasonable options for seniors.

then again we live under capitalism

Agree, increased value and demand for seniors. But how will the market solve the generation of new seniors if juniors are getting less opportunities?

Take the software development sector as example: if we replace junior devs by AI coding agents and put senior devs to review the agent's work, how will we produce more seniors (with wide experience in the sector) if the juniors are not coding anymore?