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I don't think it's gonna go that way. In my experience the bigger the chunk of code you make it generate the more wrong it's gonna be, not just because it's a larger chunk of code, it's gonna be exponentially more wrong.
It's only good for generating small chunks of code at a time.
It won't be long (maybe 3 years max) before industry adopts some technique for automatically prompting a LLM to generate code to fulfill a certain requirement, then iteratively improve it using test data to get it to pass all test cases. And I'm pretty sure there already are ways to get LLM's to generate test cases. So this could go nightmarishly wrong very very fast if industry adopts that technology and starts integrating hundreds of unnecessary libraries or pieces of code that the AI just learned to "spam" everywhere so to speak. These things are way dumber than we give them credit for.
Oh that's definitely going to lead to some hilarious situations but I don't think we're gonna see a complete breakdown of the whole IT sector. There's no way companies/institutions that do really mission critical work (kernels, firmware, automotive/aerospace software, certain kinds of banking/finance software etc.) will let AI write that code any time soon. The rest of the stuff isn't really that important and isn't that big of a deal it if breaks for a few hours/days because the AI spazzed out.
Agreed, don't expect it to break absolutely everything but I expect that software development is going to get very hairy when you have to use whatever bloated mess AI is creating.
I'm here for it, it's already a complete shitshow, might as well go all the way.