Companies all want to have software biz economics, but few of them actually know how to run a software business. A room full of high school dropouts is each going to have 1% of the productive capacity of one top-level resource. College grads will have roughly 5%. With decent leadership and mentoring that can go up to 10%. Within a few years they'll hit 10-15%, becoming 'senior engineers'. Title inflation happens because titles, and their requisite salaries, don't matter for the industry. It's the same in finance, so you see a zillion vice presidents.
It makes no sense for a company with hundreds of devs to take a top-level resource and waste their talents on writing code. Top level resources write code to stay sane and relevant, not because the company needs their code.
That only seems to make sense if those 10 less-productive people make one-tenth the salary of the single productive person.
I've seen this in action. I know of a company that hired a whole room full of know-it-all high school drop-outs to write code, rather than one or two trained college graduates. That company went out of business in a matter of months.