Camp 1 is winning because we did it. We built an artificial brain. Frontier models can think, reason, and produce code better than the average human programmer. (You have not met many actual programmers slaving away on enterprise code bases if you do not understand that this is the case; the self-selecting HN crowd does not represent the profession as a whole by a long shot.) It's just a matter of, how committed are you (is your organization) to really learning and leveraging the tools?
The industry largely has selected for camp 1 long ago.
If you don't get immediate negative feedback camp 1 can go quite a ways before problems surface.