But let's do away with the term "engineer" almost completely, because what the average web application developer is doing is hardly engineering. The tools are at the point where most of the computer engineering has been abstracted away to the point where developers can primarily focus on business logic. Most experienced web application developers that I know have already been doing product work in their day-to-day routines. People who actually write code in direct contact with customers and their needs is highly efficient.
Our industry needs an order of magnitude less people who do not write code. In my view everyone should be a programmer of some sort. Our management tools are programmable yet management will not lower themselves to the ranks of the manual laborer and instead will choose to hire someone to program their management tools for them. This is highly inefficient. I'm sure we would see less meetings if management actually had something worthwhile to do with their time.
I do see a need for computer engineers in that they should write the tools that the other programmers use for these kind of domain-specific purposes.