It may be because people don't think on an absolute time scale but rather a relative one; if you make 1 million in revenue and you only have 3 employees, you might feel like you should hire more. What happens if you start making one billion in revenue?
Read Bullshit Jobs by David Graeber if you haven't already.
Also the name of the little funny book where you will find the origin of "bikeshedding".
More pleasant and timelesd a book than "bullshit job", IMHO.
If profit is currently $800,000/year and adding 1 software developer at $120,000/year salary (+benefits, hidden costs...) can lead to $800,001 profit, the company would do it.
The new thing must be at least a bit better than the old thing. Over time those improvements compound and you end up with this: https://www.youtube.com/watch?v=fPF4fBGNK0U
I wish the IoT space weren't such a dumpster fire. I should go back to my plan to run a website on a cluster of nanoPi's.
But, you know, I guess we'll find out sometime in the next couple years.
> There was nothing anymore preventing web development from becoming so complicated
The early web was much simpler because of the resource constraints of the 90s and early 2000s. Pages only started serving 10 MB of JS when browsers got to the point where they could chew through 10 MB of JS at a barely acceptable pace.
Also:
> Managers don't really feel like pointing out "the project I'm managing doesn't really deserve a team of developers, you should take them away from me."
As a techie watching corporate politics from the sideline, this was a particularly depressing insight. I used to wonder why big companies require 50 employees to do the work that small companies need 10 employees for. I do not wonder anymore.