Issac Newton, Albert Einstein, Andrew Carnegie, Thomas Edison, Steve Jobs, Bill Gates, Nikola Tesla, ... keep thinking of names of profoundly accomplished people in areas like science, business, sports, art, etc. Then tally up how many of them had traumatic hardscrabble origins. Not many. Most grew up middle class or better and had the benefit of good education, solid family life, and a stable society.
This whole meme is bullshit, and comes from a post-apocalyptic novel where it's used as a justification to murder a prisoner of war (in context). Most people don't know its origin though. They just repeat it because it sounds "truthy" if you don't think about it very much.
The points brought up in this talk are valid though, but I don't think the answer is "good times." I think the answer is a very specific type of good times, namely zero interest rates which favored a business strategy of "expand at all costs and then we'll fix it later." (Fixing it later usually involves enshittification.) There are other types of good times that favor more balanced sustainable business models, and those tend to encourage software with a bit more of a focus on quality.
I think there's some survivorship bias at work here too though. There was a lot of total crap software in the 80s and 90s that we don't remember. There were lots of DOS and Windows apps with horrible UI/UX that would crash your entire machine because operating systems were much less solid than they are today. Security almost didn't exist unless you were on a Unix-type OS or VMS, and even there it was pretty basic and coarse grained.
Software has objectively gotten worse in one way though: it is much more bloated today. Some of that bloat is explainable by things like high-DPI displays and larger data sets, but much of it is a result of bad architecture and perverse incentives.