> with every new iteration of the AI, the internal code will get better
This is a claim that requires proof; it cannot just be asserted as fact. Especially because there's a silent "appreciably" hidden in there between "get" and "better" which has been less and less apparent with each new model. In fact, it more and more looks like "Moore's law for AI" is dead or dying, and we're approaching an upper limit where we'll need to find ways to be properly productive with models only effectively as good as what we already have!
Additionally, there's a relevant adage in computer science: "Debugging is twice as hard as writing the code in the first place. Therefore, if you write the code as cleverly as possible, you are, by definition, not smart enough to debug it." If the code being written is already at the frontier capabilities of these models, how the hell are they supposed to fix the bugs that crop up, especially if we can't rely on them getting twice as smart? ("They won't write the bugs in the first place" is not a realistic answer, btw.)