Personally I don't think coding agents will regress significantly as long as there is competitive pressure and independent benchmarks. Regulation is a risk because coding may be equivalent to general reasoning, and that might be limited for political / "safety" reasons.

Social media "regressed" from the point of view of users because the success metric from the network's point of view was value extraction per eyeball-minute. As long as there continue to be strong financial incentives to have the strongest coding model I think we'll see progress.