Yes because all the valuations right now are based on a bet that this will replace a huge chunk of the service/consulting budget toward an AI budget for pentest. This will not happen.
I don't know enough about the low-end market to rebut you there (though: I saw what my muni paid for a bargain-basement assessment and was not OK with it), but the high end of the market definitely has not been slaughtered, and I definitely think that is coming.
Juniors will have a hard time that I agree. The current level of findings of LLM is at their level.