I think there's a corollary to this. Not only is it hollowing out the middle class, it's preventing the junior engineers from stepping up to the senior level.

Everyone starts off as a bad engineer. Just like any other profession, you to make lots of mistakes to learn. But now you're less likely to get wisdom from another human to build up the knowledge and experience you need. And more likely to delegate the hard stuff to Claude so you don't learn from your mistakes.