Sure, anyone can make a flashy demo now, and so the signaling value of being able to create something like that is gone, not to mention flashy demos themselves have lost 90% of the wow factor overnight and will continue to plummet. But in a way these superficial perception shifts that don't actually impact the fundamental value of technical expertise as much as it seems.
Yes, it does affect your ability to pull a high paycheck purely from nuts and bolts code slinging—I would argue that was an especially privileged moat over the last 20 years powered by the rise of FAANG. Programmers before that era did not make anywhere near the salaries of the 2010s, and other more serious engineering disciplines never have and never will make that kind of money. So sure, pour one out for the salad days, but also it helps to have some perspective.
But why I think software engineers will be fine is this: most people simply do not have the patience, discipline, or frankly interest in thinking deeply about how anything should work. If you think AI is devaluing programmers, you should take a look at what it's doing to bad product managers and other "decision makers" who used to be able to hide behind the cost of building, and now are being exposed for not being able to rationalize different business needs and feature ideas into a cohesive product. The amount of software is only increasing, and being able to intuitively understand what computers and systems (including human processes!) can actually do, and distinguish from the magical thinking will only increase in value. The job will change for sure, but when the dust settles I believe the outcome is many more software engineers will have replaced their product managers than vice versa.