If this level of quality/rigor does matter for something like a game, do you think the market will enforce this? If low rigor leads to a poor product, won't it sell less than a good product in this market? Shouldn't the market just naturally weed out the AI slop over time, assuming it's true that "quality really does matter"?
Or were you thinking about "matter" in some other sense than business/product success?
Look at Windows. It's objectively not been a good product for a long time. Its usage is almost entirely down to its moat.
As someone who also falls into camp one, and absolutely loves that we have thinking computers now, I can also recognize that we're angling towards a world of hurt over the next few years while a bunch of people in power have to learn hard lessons we'll all suffer for.
This obscures things in favour of the “quality/performance doesn’t matter argument”.
I am, for example, forced to use a variety of microslop and zoom products. They are unequivocally garbage. Given the option, I would not use them. However, my employer has saddled us with them for reasons, and we must now deal with it.
There are some types of software (e.g. websites especially), where a bit of jank and is generally acceptable. Sessions are relatively short, and your users can reload the webpage if things stop working. The technical rigor of these codebases tends to be poor, but it's generally fine.
Then there's software which is very sensitive to issues (e.g. a multi-player game server, a driver, or anything that's highly concurrent). The technical rigor here needs to be very high, because a single mistake can be devastating. This type of software attracts people who want to take pride in their code, because the quality really does matter.
I think these people are feeling threatened by LLMs. Not so much because an LLM is going to outperform them, but because an LLM will (currently) make poor technical design decisions that will eventually add up to the ruin of high-rigor software.