For CS students I agree. For non-CS students, who need programming as a way to use computers as a tool, I think they do need a solid understanding of what a computer does and what it's limitations are (and what it's capable of), but for their day jobs (once they graduate), they will most likely be getting AI to do everything for them. As long as they can reason about what's happening, to understand the results and to improve them, this seems likely to be the path in the future.