Eventually, if enough people think like this, the hiring situation will get bad enough that people will start to compromise on seniority, and it will be hailed as a brilliant and unprecedented move by MBA's to hire more junior people cheaper and training them.
I'm curious, how does the VP of engineering figure senior developers are created? Out of thin air?
I wonder if we'll see more of this short-term thinking that will eventually create a serious shortage of experienced engineers in the future. I realize no individual executive is under any obligation to ensure the well-being of the industry at large, but if none of them care about it, they are dooming it.