> The ability to create software accelerates technological progress, which has direct and indirect benefits for everyone.

It has benefits for people with enough leverage (money and formerly labour) to obtain those benefits.

> It is true that competition could have short-term negative effect on people who sustain themselves by creating software, though.

I'm guessing that even if the unlikeliest of all unlikely things does happen and we all live off of some UBI some day, the short-term negative effects won't be "short-term" in the context of a human life.