Every advancement in software engineering productivity throughout history has done the exact opposite. It increases the overall problem space for the profession and you need more and more programmers to meet the demand.
I do, however, think there will be an inflection point in the coming decades, where the tools become more generalized and better at dealing with new problems. I might also add that the reason for this belief is simply that a lot of work is being put into making these type of generalized tools; but unlike Kurzweil, I don't quite believe it will lead to the Singularity. :)