You conveniently left out the first part of the quoted sentence, "allow programmers to actually program infrastructure". Almost everything you wrote can be programmed these days without a "traditional" sysadmin.
http://en.wikipedia.org/wiki/Comparison_of_open_source_confi...
Granted that process is still under refinement, but with dedication you can achieve those goals.
Conversely, again with cost analysis, which is cheaper, a developer who can manage all that, or a sysadmin? I am sure there is a curve, small end a sysadmin, large end automation.
Do your "traditional" programmers want to develop the sort of skill listed at http://www.sage.org/field/jobs-descriptions.html ?