I have a slightly different angle on the quoted sentence though. In my mind "what should we build" was always the most important question. Code becoming cheaper to produce just highlights that more than ever. But even before agentic coding, the world was full of software that was not fit for purpose because the people calling the shots lacked some dimension of how to translate a problem statement into a workable system (computerized or otherwise), and built by programmers who were content (or at least complicit) in not probing any of those questions with decision makers.
That's why I don't think AI is inherently bad for software—it at least has the potential to empower those with better judgment since the sheer cost of production can no longer be an excuse for why something makes absolutely no sense from the end-user perspective. There are other, larger risks with AI at a societal level, but I don't think it's inherently bad for software quality.