The baseline, out-of-the-box basic tool level will lift, but so will the more obscure esoteric high-level tools that the better programmers will learn to control, further separating themselves in ability from the people who wait for the lowest common denominator to do their job for them.
Maybe. But so far ime most of the esoteric tools in the AI space are esoteric because they're not very good. When something gets good, it's quickly commoditized.
Until coding systems are truly at human-replacement level, I think I'd always prefer to hire an engineer with strong manual coding skills than one who specializes in vibe coding. It's far easier to teach AI tools to a good coder than to teach coding discipline to a vibe coder.