Imagine if there were 5 competitors all selling variations of the same basic products with minor cosmetic differences! The horror! How would you ever make any money? It's simply inconceivable.
Or is it because he uses Claude that something changes?
Notice that commodification didn't eliminate the demand for custom made or designer clothing. It stayed a luxury and demand and variety even increased. Commodification opens up a range of markets as well besides just the cheapest market you get a whole spectrum of quality, cost and niche markets that weren't possible when supply was constrained. The same thing will happen with software. If you want to make artisanal, hand made to order apps and websites then there will be plenty of people that want that but now everyone will be able to afford their own good enough app or website without investing a huge amount of time or money to build it.