The value proposition for software - and the reason why it's highly paid and has eaten the real world - is its "write once run forever (ish)" property. Unlike every other consumable, it doesn't expire.

In this proposed world where this static software is replaced with dynamic software ("AI will build it JIT"), doesn't that destroy the value proposition?

And in the world where normal software becomes AI-integrated ("software has intelligence "), isn't this tantamount to very very high hosting costs - where each execution now costs centi-dollars instead of nano-dollars?

Seems like the only use case where the cost model is equal or better is "AI writes the software".