100%. This matches my observations exactly.

The idea that "Now that AI can churn out massive amounts of code quickly and for little cost, we should just forget trying to minimize the amount of code because code is now basically free." Is magical thinking which opposes what is actually happening.

The key insight that's missing is that code creation is the cheapest aspect of software development; reading the code, maintaining the code and adapting the code to new requirements is by far the most difficult and time-consuming part and the speed of code creation is irrelevant there. The smallest trade-off which compromises quality and future-proofing of the code is going to cost multiples the next time you (or the LLM) needs to look at it.

People with industry experience know very well what happened when companies hired developers based on their ability to churn out a large volume of code. Over time, these developers start churning out more and more code, at an accelerating rate; creating an illusion of productivity from the perspective of middle-managers, but the rate of actual new feature releases grinds to a halt as the bug rate increases.

With AI, it's going to be the same effect, except MUCH worse and MUCH more obvious. I actually think that it will get so bad that it will awaken people who weren't paying attention before.