Yes, it’s a very narrow-minded perspective that cannot understand the second-order implications of this development beyond their own experience as an experienced developer. For argument, let’s imagine that the quality of software at the top valley firms is just phenomenal (a stretch, as we all know, even as a hypothetical). That is obviously not the case for the quality of software at 99% of firms. One could argue that the dominance of SaaS this past decade is an artifact of the software labor market: any vaguely talented engineer could easily get a ridiculously well-paid position in the valley for a firm that sold software at great margins to all the other firms that were effectively priced out of the market for engineers. I think the most interesting case study of this is actually the gaming industry, since it’s a highly technical engineering domain where margins are quickly eroded by paying the actual market wage for enough engineers to ship a good product, leading to the decline of AAA studios. Carmack’s career trajectory from gaming industry to Meta is paradigmatic of the generational shift, here.

TLDR; in my opinion, the interesting question is less what happens at the top firms or to top engineers than what happens as the rest of the world gains access to engineering skills well above the previous floor at a reasonable price point.