I've seen "deep dream". You'll get models that produce stuff that locally looks like code but doesn't actually make sense. Code-like extruded product. People will waste careers on the "steering" and "minor fixups" necessary to make it actually work which will be orders of magnitude larger than the work needed to just write the software in the first place.
That's the cost of giving up symbolic AI in favour of pattern recognition.
Are they working on something like that? I'm sure that there are people doing so. Will it eventually trickle in some limited way as a productivity enhancement into Visual Studio or VS Code? Probably. Is it going to be some kind of magical no-code silver bullet that obviates the need for programmers? Not a snowball's chance in hell.
The bad thing is the non-stop messing with standards and EEE. Because it makes existing jobs unbearable.
In fact, plenty of humans do stop working by choice; we call this "retirement". It tends to be a highlight of life as long as a retiree can maintain their health. Yes, it is a challenge to find purpose outside of work for some, but many people rise to that challenge: many retirees pursue hobbies, arts, athletics, and social functions with at least the same vigor that they once applied to work. Other people work their whole lives at unfulfilling jobs due to real or imagined pressures around making money, despite other interests which they would prefer to pursue.
Your second paragraph is correct. In the short-term, technological elimination of jobs will cause great disruption and misfortune to certain workers (and we should implement policies that assuage the damage). We may have to adopt dramatically more progressive government services. The social vacuum once filled by professional relationships will need to be filled by new, different social institutions. But that's the nature of creative destruction; sometimes getting to a better global state causes local pain.
What you're suggesting (if they could pull it off) I would welcome. Either it turns into (an even worse than now) corporatist dystopia and there's turmoil before a reset, or it opens up for "everyone" and we're closer to post-scarcity.
But most likely they'll automate some stuff, because this isn't real AI, and I can adapt faster than they can and do stuff their models can't.
Microsoft bought Github for the data set. To mine code to train models to write code to put developers out of business. Microsoft is coming for all of your jobs. They aren't investing billions in AI research and Open AI for philanthropy. The sooner people realize this the better.
Sure it's tin-foil, but it's a hill I am willing to die on.