The misunderstanding is that people equate what these companies are saying and what they are doing. In reality this is the perfect time to fire people under cover. This happens every X years where as leadership you can say this tech is displacing you, when in truth its just that you arent needed anymore.

This is a capitalism functioning correctly as labor as in then moved to places it is needed more. Its sort of shocking to see devs complain about getting laid off. Thats the point of a high variance career. Great and terrible outcomes go hand in hand, if you want one you must expect the other.

I don't think software was ever sold as a high variance career. Start a startup! was sold that way, particularly by PG's early essays, but not not W2 employment. You do W2 because you want low variance, and you either love software or it pays well. Either way, I don't think most people were okay with terrible outcomes. (I don't think getting laid off is terrible, I think it should be an expected possibility. I've found that contracting/freelance has helped reduce my fear of losing my job, since you expect the job to end when you start it, and since you're regularly looking for a new job, you get a sense of how long it takes.)