Yes, and the same thing will happen in non-coding knowledge work too. Making knowledge work cheaper will cause complexity to increase, more knowledge work.

I don't think so, the whole point of writing software is it is a great sink for complexity. Encoding a process or mechanism in a program makes it work (as defined) for ever perfectly.

An example here is in engineering. Building a simulator for some process makes computing it much safer and consistent vs. having people redo the calculations themselves, even with AI assistance.

Yes, I have a theory - that higher efficiency becomes structural necessity. We just can't revert to earlier inefficient ways. Like mitochondria merging with the primitive cell - now they can't be apart.