In 10-20 years, sure. So for those 10-20 years we should encourage it.

I think that's already the reality today. Many comments here on HN talk about how hard it's to find any decent paying gigs on sites like Upwork due to global competition.

Because they are looking at the wrong places. Business that knows about UpWork already knows how to handle race to the bottom. 99% of businesses in the US do not.

Being a contract programmer is dating. Are you a super star with great skills and great personality? Fantastic, you can do equivalent of $550/h and still work 30-40 hour weeks ( translation: you are super hot, super fit and rich - you get to play with anyone you want ). Are you just OK? Well, start taking $30/h jobs that give you same 30-40 hours but live in a place where you can buy a house for $40k.

That requires you to have two valuable and difficult to learn skillset instead of just one. You have to be a good programmer and a good salesperson too. That is a tough bar to clear.