I think there’s always demand for more software and more features. Have you ever seen a team without a huge backlog? The demand is effectively infinite.

Isn’t a lot of stuff in the backlog because it’s not important enough to the bottom line to prioritize?

Right, that’s kind of the whole point. If it’s in the backlog, someone thinks it’s valuable, but you might never get to it because of other priorities. If you’re 10x more productive, that line gets pushed a lot farther out, and your product addresses more people’s needs, has fewer edge case bugs, and so on.

If the competition instead uses their productivity boost to do layoffs and increase short term profits, you are likely to outcompete them over time.