Yes, but as the price of getting work done goes down, a lot of companies that were priced out of custom software before now can hire devs, as the value hiring a few can provide just goes up. Fewer people per product, absolutely. No more teams of 10 or 20 working on the same thing. But there's so much out there that doesn't get done at all because you'd never be able to afford it.

Simple marginal thinking: When you lower the price of something, it gets more use cases. A rich person might not take even more flights because they are cheaper, but more people will consider flying when they wouldn't have at old prices