I think your falacy is in the "less code" assumption when you say "The result is less code". I'd argue that empirially we've seen this to be false. The result isn't less code, at least in a global sense, its more productivity, more features, more customization, and more specificity at a cost of less code/feature. Software has really interesting economics where as the cost/feature decreases by a factor, say 1x, then the set of features that can be profitably worked on expands by like 10x, so paradoxically, as cost/feature decreases, it makes sense to hire more engineers and expand R&D budgets.