[yes_man]

If software becomes cheaper to make it’s not like every IT company in the world is running a cartel where they agree to just cut costs and leave the output the same. Someone will come and smash the competition with more or better features and the ones who didn’t invest into development will face pressure to acquire more talent again.

There really isn’t a diminishing return on executing great ideas. Almost all software projects have an essentially endless backlog of items that could be done. So I think it will be between 2. and 3. with people who really understand how software is built being even more in demand than ever since they act as multipliers in making sure the increased output is evolvable and maintainable.