I'm expecting a similar situation to the Video game crash of 1983 which happened due to total market saturation with low quality products.

https://en.wikipedia.org/wiki/Video_game_crash_of_1983

Everyone is talking about how many things they are building. Non-devs suddenly building... But nobody seems to call out the basic law of supply and demand.

You can be the greatest marketer but you will fail when all channels are flooded. Thinking your "taste" will save you is a false fallacy, most mainstream products suck and people still buy them. There's not an infinite demand for software.

It will eventually settle in some new market configuration. However devs shouldn't have broken their market by letting everyone in, was a stupid professional move.