> Only the marketing and distribution matter in a world where it's very easy for others to clone something and sell it at a lower price

Great point. AI remixes and rips-off existing code-bases in a manner that is impossible to attribute copyright violation making it legal. ie, Perfect cloning. In a world where cloning is legal, the engineering cost of product drops to zero. That is where software production could be headed. What remains is marketing/distribution/sales.

There will remain niches solving "hard problems" which cant be cloned, but those will be rare. Hard problems are where a lot of engineering complexity resides, involving interacting components for which there are no examples in training datasets to copy from. For example, a complex distributed system or hardware with multiple nuanced tradeoffs.