It reminds me of a time (long ago) when the trend/fad was building applications visually. You would drag and drop UI elements and define logic using GUIs. Behind the scenes the IDE would generate code that linked everything together. One of the selling points was that underneath the hood it's just code so if someone didn't have access to the IDE (or whatever) then they could just open the source and make edits themselves.
It obviously didn't work out. But not because of the scope/scale (something AI code generation solves) but because, it turns out, writing maintainable secure software takes a lot of careful thought.
I'm not talking about asking an AI to vomit out a CRUD UI. For that I'm sure it's well suited and the risk is pretty low. But as soon as you introduce domain specific logic or non-trivial things connected to the real world - it requires thought. Often times you need to spend more time thinking about the problem than writing the code.
I just don't see how "guidance" of an LLM gets anywhere near writing good software outside of trivial stuff.