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I think that's exactly what happened.

Except it doesn't seem the software is getting cheaper for the end user, even though it is arguably getting cheaper to build.

Paradoxically, the costs of running the software seem to keep rising, both for running it on a local machine or as a subscription.

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Ironically AI companies driving up the price of components might increase the demand for efficient software to save costs
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Yeah, the small, useful bits of code I've made this year at work could have been contracted out in years past (we're a tiny non-tech co). But in addition to expense, there's the hassle of coordinating it, QA, etc. Really dont need all that for a project that connects a couple APIs with a minimal UI to help automate something previously done by hand.
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It would’ve been done with a coding agent anyway if contracted out.
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With software I'm seeing a lot of people who would never have been able to build something, and wouldn't have hired a developer now try their hand at selling it

Some of those will go on to be successful and need technical people to support it

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Absolutely. Thinking in zero-sum terms seems to be this community’s default now and that’s a sad situation given where we came from.
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People are scared is why.
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For rugs especially it is definitely not true. Most ultra-premium projects are also using machine-made rugs and carpets.

If handmade one appears it is as some centerpiece, and remaining ones are machine-made.

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