> At that point, the prices were simply high due to high demand relative to supply
That goes without saying. The investigation here is into demand. Which was said to be overinflated due to speculation. As noted, many of the companies hiring the developers did not have viable businesses.
“Inflated due to a speculative environment” is not an accurate way to frame labor prices that held for many years. At that point, the prices were simply high due to high demand relative to supply (compared to other types of labor).