That could be the case. But if other companies figure out a way to deliver good code with AI, then the company with the luddites is going bankrupt. Luddites are better than slop generators, but both are worse against a developer with AI who actually cares and has a deep understanding of the code base and programming.
Well, and that's how you get enshittification everywhere. Everyone just cares about time to market, consumers are left to drown among a sea of slop, and honest businesses go down because they cannot stand a chance against slop peddlers flush with VC money.
Enshittification happens after the company was quick to deliver a working solution. They successfully captured the market, killed off the competition and now they are ready to start milking the customers who have no other choice.
AI slop can actually help with this, because it reduces the cost of replacing their enshittificated software.
The reason its hard to dethrone Facebook, Instagram, YouTube, Twitch, etc. Is not because it's hard to recreate the software (it may or may not be) it's because of network effects, budgets, etc.