The model I'm referring to is: "if it walks like software and quacks like software, it's software." Its writers and maintainers are AI. It has a commercial purpose. Its value comes from fulfilling its requirements.
There will be human handlers, including some who will occasionally have to dig through the dung and fix AI-idiosyncratic bugs. Fewer Ferrari designers, more Cuban 1956 Buick mechanics. It's an ugly approach, but the conjecture that, economically _or_ technically, there must be something fundamentally broken with it is very hand-wavy and dubious.
I agree that there will be less code-level innovation overall, just like artistic value production took a big hit when we went from portraits to photographs.