I think you articulated perfectly why it's a bubble and why execs are so eager to push it everywhere. It's so alluring, it constantly feels like we're on the verge of something great. No wonder so many people have their brains fried by it.
I think LLMs are very well marketed but I don't think they're very good at writing code and I don't think they've gotten better at it!
I think they are useful as an augmentation, but largely valueless for directly outputting code. Who knows if that will change. It's still made me more productive as a dev despite not oneshotting entire files. It's just not industry-changing, at least yet.