Whether it "needs to" is its own debate.
I'm just pointing out that even with mobile phones becoming dramatically better over the past decade, that hasn't really led to the transformation of mobile apps (outside of games) that take advantage of those resources. If anything, developers have arguably become more lazy and we are seeing lower quality software being deployed because people now have enough RAM even for your 500mb static webpage. Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?
The odd thing about games is that there are quite literally a handful that push the envelope (Genshin Impact stands almost alone, a few other Chinese and Korean titles come close) in terms of graphics, art, gameplay and story complexity and then there are thousands and thousands of slop games that you can hardly call "games".
> Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?
But which skill is atrophying? As a programmer I'm really bad at converting human readable code into machine code because we have compilers to do that for us. I can't remember the last time I had to run "ld" by hand. That skill totally atrophied. But at the same time, AI has made me more ambitious. I'm trying projects I wouldn't have before and even completing some of them! I can't talk for "people", broadly, but I believe most people want to be their best and do good and do things.