I disagree. Think about it like this: Excel can do more than punch cards can, but it's also harder to learn. So you can put in more effort and get more out, e.g. you might need 130% of the knowledge, but you get 150% of the result.

These new generative AI algorithms make things easier, but they produce worse results. E.g. you can put in 50% of the effort and get 80% of the result. By lowering the amount of knowledge required to build something, you open up the labor pool to more unskilled labor. So while technically the "number of developers" will increase, the ranks will be increased with unskilled labor and the profession will cease to be desirable knowledge work.

This is very similar to how craftsmen and tradespeople were replaced with automation. For example, "Luddites" are known as people who dislike technological progress, but they were really textile workers who opposed having their high-skill jobs replaced by low-skill laborers with the factory owners pocketing the difference between the high and low skill pay.