Anyone who claims AI is great is not building a large or complex enough app, and when it works for their small project, they extrapolate to all possibilities. So because their example was generated from a prompt, it's incorrectly assumed that any prompt will also work. That doesn't necessarily follow.
The reality is that programming is widely underestimated. The perception is that it's just syntax on a text file, but it's really more like a giant abstract machine with moving parts. If you don't see the giant machine with moving parts, chances are you are not going to build good software. For AI to do this, it would require strong reasoning capabilities, that lets it derive logical structures, along with long term planning and simulation of this abstract machine. I predict that if AI can do this then it will be able to do every single other job, including physical jobs as it would be able to reason within a robotic body in the physical world.
To summarize, people are underestimating programming, using their simple projects to incorrectly extrapolate to any possible prompt, and missing the hard part of programming which involves building abstract machines that work on first principles and mathematical logic.