There are two problems with waterfall. First, if it takes too long to implement, the world moved on and your spec didn't move. Second, there are often gaps in the spec, and you don't discover them until you try to implement it and discover that the spec doesn't specify enough.
Well, for the first problem, if an AI can generate the code in a day or a week, the world hasn't moved very much in that time. (In the future, if everything is moving at the speed of AI, that may no longer be true. For now it is.)
The second problem... if Ossature (or equivalent) warns you of gaps rather than just making stuff up, you could wind up with iterative development of the spec, with the backend code generation being the equivalent of a compiler pass. But at that point, I'm not sure it's fair to call it "waterfall". It's iterative development of the spec, but the spec is all there is - it's the "source code".
You framed it better than I would. The part I'm still working through is making re-planning feel cheap when specs change. Right now if you change something early, downstream tasks get invalidated and the cascade isn't always obvious. Ideally when the project gets built, and then specs change, nothing of the generated code should change if an irrelevant part of the spec changed, this is a bit harder to do properly but I have some ideas.
I agree that, this is what makes it not waterfall. You're iterating on the spec and not backtracking from broken code. The spec is the "source code", replanning and rebuilding is just "recompiling".