They are also functionally in a prison...
Yes, there is a tremendous amount of waste in the global economy, but if we want to improve quality of life then we should focus on the mechanisms which cause that waste in the first place (e.g. targeting GDP growth.) If we solved those excesses (a very tall order), then why would it be fair for one group to be over-consume at the cost of another groups over-production?
When almost no one had to work economics became ridiculous, people were paying $40 for a $15 meal to be delivered to them, fiscal policy became clinically insane, tech stocks minted a new bubble. Are you proposing that bubble should be more permanent? The real economics of 'figure it out or lose your lunch' is much better policing than 'figure it out or go back to UBI'.
Burning an entire generation so the next one will be better isn't good policy.
This doesn't just apply to software development. There are a lot of garbage jobs, dead end positions, where the people are effectively not doing anything. That is a weight on our economy but we can't just cut them out. What would those people do if they didn't have to waste so much of their time to live? Sure there are going to be people that go all in on becoming puddles on the couch, but I'd argue more people have passions they would actually have the energy to pursue.
People could spend more time with their families without being stressed out and burned out by everything else in the world. I'd argue that would most likely lead to healthier childhoods for kids, likely with better supplemental education as well leading to a smarter society in the long run.
People get tired of partying, and the people that don't make good examples for the next generation of what not to do. You can see that in our current society as the younger generation is drinking significantly less and doing fewer drugs to the point major alcohol manufacturers are concerned about their bottom lines.
There will always be degenerates, but people want the fulfillment that comes with actually doing things like you said. They will find that one way or another.