> ...and it can stay irrational for long enough to destroy everything we know in tech.

Nah. For decades software engineers have been more expensive than the cost of buying the extra hardware needed for vastly inefficient software. There are orders of magnitude of inefficiency there. So there's a ton of slack in the world's software that can be taken up by software engineers while hardware is scarce, pushing back the date where there will really be a problem probably by decades more.

Of course software engineers will see a problem though, because they'll have to learn to to write efficient software again.

ie. "Great, but now make it work with less RAM" will be a thing again, instead of "It needs more RAM so order some as it's cheaper than your time to fix the code".