Definitely this. I've had plenty of useless meetings with no helpful outcomes that lasted an hour with 6 or more people in them, and a few of them will have had more than $4 spent on snacks, let alone everyone's wages.

That said, poor communication will always get you no matter what: had one day spent going back and forth with a client, they kept saying they wanted a button "wider" each time around, I ended up making it full screen width and they still said "wider", asked them to draw a picture and they finally said "wider vertically". That may or may not have been faster with an LLM, depending on if the LLM ever thought to ask the client to draw what they meant, but fundamentally would have been exactly the same problem.

A meeting between all the stakeholders to agree on requirements easily runs $1,000/hour. Taking your $4 functional PoC into that meeting is going to save so much time...