It just became more feasible to build profitable products/services that solve larger products, which would increase the demand for programmers. As long as people/companies want to make more money, they will keep moving on to more ambitious projects that have just become technologically/economically feasible. In aggregate, they will not stop at the previous technological/profit level, downsize by firing all but the absolute minimum of programmers, and stay content with their stagnating income.
If programming was niche and hard to capitalize on then yeah the demand wouldn't increase if you could do "more".
HW engineers seems like a good example of this. HW has gotten tremendously better, but HW engineers haven't seem a commensurate increase in demand.
The 'GitHub for hardware' of that time would be one heck of a sight, with a huge ecosystem of interchangeable tried-and-tested hardware parts, corresponding to open source software libraries and packages today.