Web development does not generally fall under this umbrella, however.

Knowing how to write a complex web app with decent structured maintainable clean code, keep it optimized and secure, the ability to deploy it to to servers at the touch of a button isn't something I would expect from a junior dev.

This. So very much this.

Software companies always look for people with the latest fad ^H^H^H skill, which is - almost by definition - in short supply.

When nominal demand far outstrips nominal supply, I think it's fair to call it a shortage. Temporary. It will correct. In a less than a decade.

It's funny - the management ego part that is in alignment with your comment (that "there is no shortage")... Because coders have become the modern blue-collar assembly line worker, management types often want to pay assembly line worker prices, and are having a difficult time coming to grips with the fact that these workers might make more money than they do. Outrageous!

This is already happening in areas where there is a shortage (salaries rising) and in the time it takes for new people to acquire the required skills there is a shortage (ie. people would be willing to accept the conditions below the market rate but they can't get trained fast enough/get visas)