Hollowing out the middle class (and yes I consider software engineers to be mostly upper middle class, most of them need to continue working for someone else) is not a good thing. What makes you think any of this is creating upward class mobility instead of just increasing wealth concentration?

Indeed, the changes around socialization and community formation during the last 30 years perfectly discourage meaningful class solidarity. Everybody will continue scrolling angry content while the middle class hollowing out proceeds.