That’s fine. New opportunities to provide value will emerge. If software becomes oversupplied, fewer people will enter that field and move to other areas where value is needed. If you only want to add value in the software space, then yes, it may be a problem.

If now only everyone who is talented at crafting software (or any other job that might be replaced), but who is out of a job could magically be as talented at something else, and enjoy doing that other work, then we would have no problem. But one issue is, that often significant time goes into becoming good at what one does. Switching has a very high personal cost in terms of time and having no income for a prolonged time.