The "devaluation" they mention is just the correction against the absurd ZIRP bump, that lured would-be doctors and lawyers into tech jobs at FAANG and FAANG-alike firms with the promise of upper middle class lifestyles for trivially weaving together API calls and jockeying JIRA tickets. You didn't have to spend years more in grad school, you didn't have to be a diligent engineer. You just had to had to have a knack for standardized tests (Leetcode) and the time to grid some prep.

The compensation and hiring for that kind of inexpert work were completely out of sync with anything sustainable but held up for almost a decade because money was cheap. Now, money is held much more tightly and we stumbled into a tech that can cheaply regurgitate a lot of so the trivial inexpert work, meaning the bottom fell out of these untenable, overpaid jobs.

You and I may not be effected, having charted a different path through the industry and built some kind of professional career foundation, but these kids who were (irresponsibly) promised an easy upper middle class life are still real people with real life plans, who are now finding themselves in a deeply disappointing and disorienting situation. They didn't believe the correction would come, let alone so suddenly, and now they don't know how they're supposed to get themselves back on track for the luxury lifestyle they thought they legitimately earned.

I don't believe companies can reliably tell expert and non-expert developers apart, to sort them so efficiently to play out like you say.