(Assuming that LLM does indeed multiply productivity) We are likely in for some rough days, as it's much easier to just fire people and maintain the same level of productivity. Musk (arguably) did that with Twitter, even before this started. I was impacted by a post-COVID layoff, myself.

But do you think that once that has leveled out a bit, the bandwidth/market bottleneck you referenced will be identified as the new bottleneck[0]? Like, new businesses will launch, or existing companies will identify new growth areas that they did not have the capacity to move into.

I don't know how to respond to your second paragraph. Looking in that direction is a bit too overwhelming.

[0] I think this was always the problem, not developer productivity