This is just a repackaged argument against SaaS and cloud infrastructure. Every business could be using subscription free spreadsheet software and storing all of their data on prem and employing an IT team to manage the servers and data but the majority choose to pay a third party to handle all of that. Hell, they could even go so far as to do it all manually with written records and filing cabinets. All of those workflows still exist in varying degrees scattered across the myriad of businesses, the existence of SaaS doesn't eliminate the others. AI seems to be playing out in a very similar way with the big providers, local models and die hard human programmers.

The exact same arguments were made against electronic computing in general, in the early days. Pearl clutching is a very human thing to do as new technologies are integrated and become common place. A whole generation or two of developers are going to have to pass away before we stop hearing incessant diatribes about LLMs.