You're absolutely right about blue collar needing a revival, there's an enormous amount of work to do there, and it's a type of work near impossible to replace with AI. Further, I'd say that we need to better appreciate these jobs, in compensation and work conditions.

That said, I don't see this mass transition happening from white collar to blue collar for a very sizable part of existing white collar. In many developing countries, white collar is a of a considerable age. There's skill/capability/physical issues as well as a social/cultural aspect. You're telling people that their educational investment is now worthless and are hereby demoted to the working class. May be correct, true and just, but expect social unrest.