While I agree with this in principle, I think the market is a separate problem. As much as this is correct, the market is not going to select for competence. The market is going to select for affordability.

Ultimately the most affordable worker of the future is going to be the person who knows just enough to prompt an agent to first build a feature and second fix it "fast enough" when it ultimately breaks.

Companies might have a couple of people who actually know how to design systems and think deeply on hand for overall architecture, load balancing design, and serious problems but this will be a small cadre of employees. In some sense, I suspect, in relation to degrees, computer science will eventually look like the field of curation: an extremely small pool of outstanding positions looking to be filled by an orders of magnitude greater number of degree holders.

Unless the bubble does eventually burst, in which case people will hopefully return to their senses.

You're missing nepotism from the equation. The salaries available at American Big Tech have made it so that graduates see a dev career as more desirable than traditional prestige industries like investment banking and law. The same nepotistic hiring practices common in those industries will also become entrenched in tech and already are to an extent.